European stocks trade flat as tech sector comes under pressure, Dassault Systèmes shares decline

European stock markets were muted as concerns about the disruptive impact of artificial intelligence on industrial software offset the rebound in bank stocks. Dassault Systèmes shares fell by 10%.

The Stoxx Europe 600 Index closed virtually unchanged. Apart from bank stocks, telecommunications and insurance stocks outperformed the broader market, while media and technology stocks led the declines. Aggregate data showed that, due to the US market holiday, trading volume was 33% below the 30-day average.

Dassault Systèmes was not the only company hit by anxiety over artificial intelligence. Siemens shares fell 6.4%, and SAP SE dropped 2%.

Stephan Kemper, Chief Investment Strategist at BNP Paribas Wealth Management, said, “Perceptions of artificial intelligence seem to have shifted completely, from a saving angel to a kiss of death.”

European benchmark stock indices continue to hover just below the record highs set last week. The earnings season has been mixed: overall, corporate profit growth remains solid, but companies that missed expectations have been hit hard. The frequency of mentions of “disruptive impact of artificial intelligence” in management conference calls has nearly doubled compared to previous quarters, confirming that such concerns have spread far beyond the technology sector.

Editor: Ding Wenwu