Feb 17 (Reuters) – European shares were steady on Tuesday, echoing a cautious tone in global markets as key bilateral talks between the U.S. and Iran were underway, while investors scoured for clues on how AI disruptions could upend traditional business models.
The pan-European index held its ground at 819.22 points, as of 0819 GMT, with most sectors trading in the black.
Geopolitics dominated the mood, with the U.S. and Iran scheduled to hold indirect talks in Geneva later in the day to resolve their nuclear dispute, while separate U.S.-mediated peace talks between Ukraine and Russia are also planned, likely focusing on disagreements over territory.
Against this backdrop, defence stocks slipped 1.2%. Defence stocks often drop when geopolitical tensions ease, because investors anticipate lower near-term demand for military equipment and services.
Investor sentiment was also stabilizing, following weeks of volatility in global markets, as concerns over artificial intelligence applications potentially pressuring margins in traditional businesses began to ease.
On the earnings front, UK’s InterContinental Hotels Group added 1.1% after the Holiday Inn-owner posted fourth-quarter global revenue per available room above market expectations.
Miner Antofagasta posted a 52% jump in annual core profit, but its shares dropped 3.2% due to softer copper prices.
(Reporting by Avinash P and Johann M Cherian in Bengaluru; Editing by Sherry Jacob-Phillips)
Comments