European markets slip again as oil climbs to five-month highs
European stocks fell for a second day, pressured by rising crude prices and mixed earnings outlooks, while the euro recovered slightly.
European equity markets continued their decline on Tuesday, with the STOXX 600 slipping 0.6% following a near-1% loss on Monday. Semiconductor makers ASML and ASMI led sector losses, each shedding more than 3%, as higher oil prices—Brent topping $110 a barrel—dampened risk appetite. The euro modestly rose to $1.122, while French government yields fell after a recent sharp rise amid protests over the country's deficit.
The dollar index slipped to 101.77. Market participants are focused on upcoming earnings from AI-heavy firms, including Meta, Tesla, SpaceX and Netflix, to gauge whether AI spending is delivering returns. Meanwhile, the Japanese yen strengthened after strong demand for long-dated government bonds, and the Canadian dollar gained as the US dollar weakened.
Why it matters
Rising oil prices and mixed earnings expectations are pressuring European markets and influencing currency movements.
How this story developed
- Oct 13 Asian markets tumble as US chip slump drags South Korean shares below 3%
- Oct 13 The IMF projects global GDP to exceed 3% in 2026, buoyed by AI spending, but warns that ongoing Middle East conflict and rising debt could undermine the outlook.
- Oct 13 Silvana Tenreyro said the world’s economic resilience is being tested and urged that the UK “stay the course” and repair its finances.
- Oct 13 IMF raised its 2026 global growth projection to 3.1% and cut growth forecasts for the Gulf, Latin America and Turkey.
- Oct 14 US semiconductor index fell 2.7% and the Nasdaq 100 slipped 0.7%, widening the regional decline.
- Oct 15 CoreWeave’s shares dropped 6% and its 2031 bond yields rose above 16% as investors fret over its $50 billion debt load and AI-related borrowing.
- Oct 16 CoreWeave rebounded 6% after a steep decline, lifting broader semiconductor shares.
- Oct 18 CoreWeave’s bond yields rose above 16 % and default‑insurance costs jumped to about 1,000 basis points.
- Oct 20 Asian markets slipped following earlier AI‑stock rebounds, as funding concerns and lower oil prices outweighed the US chip rally.
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