"A busy day for European markets, with the Bank of England and European Central Bank rate decisions set to provide further catalysts into an already volatile and unpredictable market that has seen sharp tech and precious metal declines over the past week. In Europe, the selling pressure seen for many of the US tech names has highlighted the benefits of the European indices which are often less tech-focused and more aligned with the real economy."
"The fact that the source of this selling pressure is a private company highlights the dire situation where losses seen throughout the market aren't balanced off by gains in the company that stands to benefit from the shift towards their product. In fact, the eventual multi-trillion dollar IPO's from the likes of Anthropic and OpenAI would likely draw money out of the market as investors liquidate alternate positions to buy into these AI giants."
European markets are volatile as the Bank of England and European Central Bank rate decisions act as near-term catalysts amid recent tech and precious metal declines. European indices have shown resilience relative to US tech-heavy names because of stronger ties to the real economy. UK inflation expectations toward a 2% Q2 outcome raise the prospect of additional easing in the second half of the year. Heavy selling has concentrated in software as investors fear AI can reproduce products and services cheaply. Private-company-driven selling has amplified losses without offsetting gains, and looming mega-IPOs could trigger capital rotation into AI giants.
Read at London Business News | Londonlovesbusiness.com
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