STOXX 600 Climbs Amid AI Disruptions in Software Sector

The pan-European STOXX 600 index reached a record high amid mixed market movements. Software and advertising stocks plunged due to AI disruptions, while commodity-linked stocks rose. Investors are reconsidering existing business models as AI becomes a formidable market force, with significant effects on technology and professional-services sectors.

The pan-European STOXX 600 index reached a record close on Tuesday, rising by 0.1% to 617.93 points. This uptick offset significant declines in the software and advertising sectors as sharp selloffs continued.

According to Swissquote bank's senior market analyst Ipek Ozkardeskaya, an initial boost in investor risk appetite was tempered by declining confidence later in the session. The introduction of Anthropic's legal plug-in for its Claude generative AI chatbot triggered fresh concerns over the viability of traditional business models, notably affecting the software industry.

Commodity-linked stocks provided gains, driven by a recovery in precious metal prices. Meanwhile, Germany has outlined a €35 billion military space investment plan to address increasing threats from space. Europe's asset manager Amundi reported unexpected net inflows, further illustrating the diverse financial landscape and shifting investor focus.

(With inputs from agencies.)