European equity markets were set to open lower on Tuesday, as a global selloff in technology shares weighed on investor sentiment. The pullback underscored mounting doubts over the sustainability of the AI-driven rally, with investors re-evaluating capital expenditure plans in the face of higher borrowing costs. Still, weaker oil prices and a decline in bond yields provided some offsetting support for risk assets.
In Europe, attention will center on German inflation figures and current account data, key indicators for the region’s economic outlook. On the corporate side, sales at LVMH’s largest division fell sharply, as worsening economic conditions and a consumer backlash in China hurt demand for its flagship Louis Vuitton brand. Italian lender Banca Monte dei Paschi di Siena reiterated its ambition to help create a larger banking group, while dismissing Intesa Sanpaolo SpA’s revised takeover proposal as financially insufficient. In premarket trading, futures on the Euro Stoxx 50 and Stoxx 600 were down 0.2% and 0.1%, respectively.
