Agencies European markets fall as AI investment concerns, Middle East tensions and rising oil prices unsettle investors, while healthcare stocks gain on Bayer's improved outlook.
Synopsis European shares declined as technology stocks led losses amid concerns over AI valuations and escalating US-Iran tensions.
Rising oil prices added pressure, while stronger earnings expectations lifted healthcare stocks, with Bayer gaining 6% after raising its 2026 profit outlook.
By Anupam Nagar, ETMarkets.com Nov 03, 2026, 05:26:00 PM IST Follow us European shares fell on Tuesday, with technology stocks leading losses as concerns over the artificial intelligence (AI) trade and escalating tensions in the Middle East dampened investor sentiment, Reuters reported.ADVERTISEMENT The pan-European STOXX 600 index declined more than 0.5% to 645.8 points.
Germany's DAX, Spain's IBEX and Italy's FTSE MIB fell around 0.9% each by 0817 GMT.According to Reuters, investor sentiment weakened after a US official said Washington had carried out strikes on Iran's Qeshm Island in the Strait of Hormuz.
The development came a day after Iran signalled openness to peace talks, while US President Donald Trump indicated he could consider holding off on strikes against Tehran until after the midterm elections.
Brent crude futures rose 1.6% to above $100 a barrel, recovering from a 7% decline in the previous session.Technology stocks led sectoral losses, falling around 2%.
Shares of Aixtron dropped 3.5%, while ASML declined 2.8%.
Siemens Energy also shed 2.4%.ADVERTISEMENT Reuters reported that Asian technology stocks had come under pressure earlier in the session as investors reassessed the AI investment theme following disappointing results from major US hyperscalers last week.
The iPhone maker warned of rising memory-chip costs, raising concerns about the impact of higher component expenses on profitability.However, healthcare stocks bucked the broader market weakness, supported by a 6% rally in Bayer.
