European Stocks Lag Global Peers as AI Boom and Energy Shock Undercut Earlier Rally
Updated
Updated · Bloomberg · May 16
European Stocks Lag Global Peers as AI Boom and Energy Shock Undercut Earlier Rally
11 articles · Updated · Bloomberg · May 16
European equities have fallen behind after a strong run, as investors rotate toward AI-linked winners and away from markets seen as vulnerable to a global energy shock.
The shift reflects Europe’s weak position in the artificial-intelligence trade: the region has almost none of the companies at the center of the boom drawing global capital.
Middle East war risks have also darkened the outlook, leaving Europe more exposed to higher inflation and supply-chain disruption than investors had priced in during the earlier rally.
That marks a reversal from the prewar narrative, when cheaper valuations had pulled money out of the US and into European stocks.
Can Europe’s hidden AI strengths prevent it from becoming a digital colony of the United States?
As Mideast conflict chokes global oil, can Europe’s economy survive its second energy shock in years?