European and Asian stock markets struggled for direction Wednesday following a tech-fuelled sell-off on Wall Street, while precious metals recovered further with gold trading above $5,000 an ounce.
Shares in Danish pharmaceuticals group Novo Nordisk plunged around 18 per cent in Copenhagen after the maker of Ozempic and Wegovy anti-obesity drugs warned of lower sales this year.
London’s FTSE 100 index rose one per cent, with drugmaker GSK gaining more than three per cent after reporting a sharp rise in annual net profit.
Paris advanced, while Frankfurt dipped in midday deals.
Official data showed eurozone inflation eased below the European Central Bank’s two-per cent target in January, with the ECB expected to leave interest rates unchanged on Thursday.
The Bank of England is also expected to hold borrowing costs the same day.
‘The dust settled on Wednesday after a dramatic session for tech-related stocks amid new AI disruption,’ said Dan Coatsworth, head of markets at AJ Bell.
Wall Street investors were spooked Tuesday by news that AI startup Anthropic — which created the Claude chatbot — had revealed a tool that could be used by firms to carry out legal work.
The announcement hit firms in the software, financial services and asset management industries.
Downbeat sales projections from Advanced Micro Devices compounded the darker mood.
‘Investors fear the AI juggernaut will cut deeply into earnings as agents take over workflows and replace more traditional programmes,’ said Susannah Streeter, chief investment strategist at Wealth Club.
Shares in Hong Kong and Shanghai rose, while Tokyo slipped on Wednesday.
Precious metals rose for a second day, after tanking on Friday and Monday as US president Donald Trump’s nomination of hawkish Kevin Warsh to head the Federal Reserve sent the dollar surging.
Gold traded back above $5,000 an ounce after posting its largest daily gain since 2008 on Tuesday.
Oil prices edged higher on a fresh pick-up in US-Iran tensions after an American jet shot down an Iranian drone in the Middle East, just as the two sides prepared to hold key nuclear talks.
Washington and Tehran agreed to talks despite Trump’s repeated threat of military action against Iran — and Iran’s warning that it would respond with strikes on US vessels and bases.
Traders were cheered by news that Trump had signed into law a congressional spending bill to fund government agencies while buying more time for lawmakers to negotiate over the administration’s controversial immigration crackdown.
In other corporate news, shares in gaming giant Nintendo tanked 11 per cent — its biggest loss in 18 months — after releasing disappointing quarterly earnings and amid concerns about its profitability owing to a shortage of memory chips.
