European Shares Poised For Mixed Open

(RTTNews) - European stocks are seen opening mixed on Thursday, with technology stocks likely to come under selling pressure amid concerns over whether the artificial-intelligence driven rally can be sustained.

A massive sell-off in semiconductor stocks ripped through Asian markets despite TSMC posting record Q2 2026 revenue and ASML raising its full-year sales forecast.

With AI spending by U.S. hyperscalers expected to reach $1 trillion in 2027, markets remain concerned over an AI bubble and lofty valuations in the tech sector.

While recent U.S. inflation data helped reduce expectations of near-term Federal Reserve interest-rate increases, there are fears that higher energy prices as a result of mounting geopolitical risks in the Middle East could keep interest rates elevated.

Amid continued conflict, missile strikes, and diplomatic efforts surrounding Iran, U.S. President Donald Trump has defended Washington's military action against Iran and said Teheran will be "defeated very soon".

After the U.S. executed daylight airstrikes killing at least seven Iranian troops, Iran's top negotiator, Mohammed Bagher Ghalibaf, has declared that the county's armed forces have "complete freedom of action" against the "enemy's aggression".

Iran is fighting an "existential war" against the United States as Washington pursues objectives that extend beyond changing Iran's government, Ghalibaf said.

Media reports suggest that Trump is leaning toward further expanding U.S. military operations in Iran, including sending ground forces and the possible seizure of Kharg Island, Iran's primary oil export terminal.

The U.S. dollar held near a one-month low in Asian trade as another benign reading on U.S. inflation supported bonds and lessened the risk of an imminent rate hike from the Federal Reserve this month.

Gold slipped to $4,029 an ounce while Brent crude futures hovered below $85 a barrel.

Overnight, U.S. stocks fluctuated before closing mostly higher, the dollar weakened and bond yields dipped as softer-than-expected producer price data bolstered the view that the Federal Reserve can remain patient on interest rates.

Data showed the producer prices index for final demand unexpectedly dropped 0.3 percent last month after a downwardly revised 0.6 percent increase in May.

Federal Reserve Bank of New York President John Williams said that inflation may have peaked and should begin easing but remains "unquestionably too high".

In geopolitical news, the United States launched a new wave of strikes against Iran after reimposing a naval blockade of all Iranian ports.

The tech-heavy Nasdaq Composite gained 0.6 percent, the S&P 500 added 0.4 percent and the Dow rose 0.3 percent.

European stocks ended mixed on Wednesday as traders retreated from rate-hike bets and reacted to weak GDP data from China. The pan-European STOXX 600 inched up 0.1 percent.

While France's CAC 40 edged up 0.2 percent, the U.K.'s FTSE 100 slipped 0.1 percent and the German DAX shed 0.6 percent.