Global markets retreat on Wednesday

Global markets retreated on Wednesday as investors reassessed the impact of artificial intelligence on technology business models, while volatility remained elevated.

Global shares slipped after a selloff deepened in data analytics, professional services, and software stocks, driven by concerns that recent AI developments could disrupt established revenue models. European equities pulled back from record highs, with shares in LSEG, RELX, and Wolters Kluwer extending sharp losses for a second session. The STOXX 600 eased 0.2 per cent, while the FTSE 100 edged up 0.5 per cent, supported by gains in healthcare stocks. Markets also faced pressure from an 18 per cent plunge in Novo Nordisk after the drugmaker delivered a weak 2026 outlook.

US futures were little changed after Wall Street closed lower on Tuesday, led by declines in major software stocks. Investor unease followed the nomination of Kevin Warsh as the next Federal Reserve chair, with expectations that tighter financial conditions could weigh on risk assets.

Currency markets were steadier ahead of policy meetings at the European Central Bank and the Bank of England, with both expected to keep rates unchanged. The euro held near $1.18, sterling ticked higher, while the yen weakened beyond 156 per dollar ahead of Japan’s lower house election. Bitcoin hovered near its lowest level since November 2024, reflecting continued pressure across digital assets.

Attribution: Reuters