Shares slide again as oil stays high; AI earnings in focus
SPY•European shares fell 0.6% as Brent crude rose above $110 a barrel to a five-month high, while investors focused on earnings from major AI companies later in the week. South Korean AI infrastructure company Elice Group fell nearly 30% below its IPO price on its market debut.
1. Oil weighs on shares
The pan-European STOXX 600 fell 0.6% on Tuesday, its second straight daily decline, as higher oil prices weighed on risk sentiment. Brent crude rose above $110 a barrel to a five-month high after Yemen's Iran-aligned Houthis said they had launched attacks on Saudi energy, airport and military targets.
2. Earnings in focus
Investors are looking for signs that consumer demand and the broader economy remain resilient, and whether spending on AI infrastructure is generating returns. South Korean AI infrastructure company Elice Group fell nearly 30% below its IPO price on its market debut. Quarterly earnings were due from SpaceX and Netflix on Tuesday, with Meta and Tesla results scheduled for later in the week.
3. European market details
European semiconductor companies including ASML and ASMI fell more than 3%. The euro rose 0.2% to $1.122, while French government bond yields edged lower after a sharp rise the previous day.
