European stock indices edged higher on Tuesday, partially recovering from the previous session’s losses as investors reassessed fears that advances in AI technology could displace more traditional sectors of the economy. The Eurozone’s STOXX 50 rose 0.1% to 6,122, while the pan-European STOXX 600 added 0.3% to 630, remaining close to the record high reached last week.
Companies linked to AI infrastructure advanced ahead of Nvidia’s earnings release in the US and following news of a deal between Meta and AMD. ASML and Infineon gained 1.1% and 1.8%, respectively. Meanwhile, auto stocks rebounded after the US imposed a 10% tariff on all goods imported from Europe—below Monday’s signaled 15% rate—after the Supreme Court struck down earlier trade barriers. BMW, Volkswagen, and Mercedes-Benz each rose more than 1%.
However, software and payments heavyweights SAP and Adyen extended the previous day’s declines. Banks also finished sharply lower, with Santander losing 2.5%, and Intesa Sanpaolo and Deutsche Bank each falling 1.7%.
