European stocks dip as AI worries hit tech and financials

• Dassault Systemes crashed nearly 20% after Q4 revenue rose just 1% to 1.68 billion euros, at the lower end of guidance, continuing selloff from last week's AI disruption worries
• Insurance stocks fell nearly 2% this week after Barclays downgraded the European sector to 'Underweight' following the release of Insurify's ChatGPT tool
• AI hardware makers outperformed, with Siemens Energy gaining 5.2% after reporting net profit nearly tripled in its first fiscal quarter

Summary

European stocks declined on February 11, with the pan-European STOXX 600 index falling 0.2% to 619.66 points by 0820 GMT. France's CAC 40 led regional losses, dropping 0.3%.

Key Movers:

Technology stocks drove the decline, with the sector falling 2%. Dassault Systemes plunged nearly 20% after disappointing Q4 results showed revenue rising just 1% at constant currency to €1.68 billion ($2.00 billion), at the lower end of guidance. The company was already under pressure from AI-disruption concerns that roiled markets the previous week.

The insurance sector extended losses, declining nearly 2% for the week after the launch of Insurify's ChatGPT tool prompted Barclays to downgrade European insurance stocks to 'Underweight.'

Gainers:

Investors favored AI hardware manufacturers over software companies. Siemens Energy surged 5.2% after reporting net profit nearly tripled in its fiscal Q1, benefiting from AI equipment demand.

London Stock Exchange Group rose 2.7% following reports that activist hedge fund Elliott Management built a significant stake in the data provider.

Heineken climbed 4.4% after announcing plans to cut up to 6,000 jobs globally as part of restructuring efforts.

Market Implications:

The divergence between AI software and hardware stocks highlights investor uncertainty about AI's impact on traditional tech business models. The insurance sector faces similar disruption concerns following the release of AI-powered tools that could automate key functions. The market is differentiating between AI beneficiaries (hardware/infrastructure) and potential AI casualties (traditional software and services).