Analysis-How US tech pain is European stock markets' gain

Résumé détaillé

By Danilo Masoni and Dhara Ranasinghe MILAN, Nov 13 (Reuters) - Global tech turmoil, exacerbated by the shock exit of Nvidia chief executive, Jensen Huang, may be a boon for Europe's stock market whose AI weakness has turned into a tailwind.

MILAN, Nov 13 (Reuters) - Global tech turmoil, exacerbated by the shock exit of Nvidia chief executive, Jensen Huang, may be a boon for Europe's stock market whose AI weakness has turned into a tailwind.

For much of the tech rally, Europe's relative lack of mega-cap tech firms was viewed as a disadvantage. As investors assess the fallout for the world's most valuable chipmaker and the broader industry, European equities have outperformed.

The pan-European STOXX 600 hit a record high on Thursday and posted the biggest weekly jump since June, supported by earnings growth in sectors less directly dependent on the fortunes of the AI trade, such as energy.

While the STOXX 600 is up roughly 2.7% this month, the Nasdaq-100 is down about 2.7% and Japan's Nikkei is down just over 3%.

"The market is broadening and other themes are emerging," said Alberto Conca, chief investment officer at Swiss wealth manager LFG+Zest, speaking before Huang's departure.

Still, investors caution that any protection would be relative. While Europe's lower concentration in technology stocks may cushion AI-related turbulence, a broader selloff on Wall Street would likely weigh on global equities.

The result has been a rotation away from some of the market's most crowded AI-linked trades, gripped by questions over valuations, debt-funded spending and the prospect of greater scrutiny following Democrats' midterm electoral sweep.

Over two months, the STOXX is up more than 4%, while the S&P 500 has lost roughly 0.8% and tech-heavy Asian indices in South Korea and Taiwan are down 23% and 9%, respectively.

Strong earnings and better-than-expected economic data are also acting as buffers against the recent bond market turmoil in France sparked by high-debt worries, while sentiment has also improved with the recent fall in energy prices.

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