European Shares Plummet Amid Global Market Jitters

European shares have hit a two-week low amid a global market downturn, driven by mixed earnings reports and investor apprehension over U.S. rate cuts and AI deals. The STOXX 600 index dropped 1.4%, with significant sector declines. Key companies such as Siemens and BP also faced slumps.

European shares experienced a sharp decline on Tuesday, marking their lowest point in over two weeks. This drop reflects a broader risk-averse trend across global markets as investors delve into a range of mixed earnings reports.

The pan-European STOXX 600 index fell 1.4% to 564.26 points as of 0929 GMT, dragging all major bourses with it. Leading the downturn were basic resources, which saw a 2.5% decrease, influenced by declining copper prices. Siemens and ABB, stocks which earlier surged, also saw declines of over 1.7% and 2.5% respectively.

The market turbulence comes amidst limited U.S. economic data due to a government shutdown, raising uncertainties around the Federal Reserve's potential rate cuts. This atmosphere of unease is compounded by apprehensions around deals in the artificial intelligence industry. Meanwhile, corporate earnings reports reveal a stark contrast between U.S. company performances and their European counterparts.

(With inputs from agencies.)