Europe set to open lower as Democratic sweep fuels AI regulation fears
European shares were likely to open lower on Wednesday , with tech stocks in focus after Democrats won control of both chambers of the US Congress, fuelling concerns that tighter AI regulation could dampen investment in a sector that has driven much of the recent rally. Futures tracking the STOXX 600 were down about 0.2% by 0639 GMT, having recouped some losses following a 1.4% slide during Asian…
European stocks are expected to open lower on Wednesday, with technology stocks drawing the most attention. This comes after Democrats secured control of both chambers of the US Congress, spurring worries about potential tighter artificial intelligence (AI) regulation. The STOXX 600 futures were down around 0.2% by 0639 GMT, after rebounding from a 1.4% decline during Asian trading hours.
The German DAX and the UK’s FTSE 100 both slipped about 0.2%, while the UK’s FTSE 100 fell 0.4%. Democrats gained majorities in both houses of Congress on Tuesday, defeating President Donald Trump in key conservative territories like South Carolina and Texas. This outcome unsettled global markets, as investors anticipated stricter oversight of data center construction, which has previously faced resistance in the US.
While technology firms represent only about 7% of the STOXX index, they have delivered the third-best performance this year, trailing behind energy and chemicals, buoyed by strong demand for AI infrastructure. Companies involved in AI-linked spending, such as Siemens Energy and Schneider Electric, will also be under scrutiny. Meanwhile, Novo Nordisk, the maker of the weight-loss drug Wegovy, is expected to see a boost following the release of its third-quarter adjusted operating profit, which surpassed forecasts.
The company also raised its full-year sales and profit expectations. Investors will closely monitor the healthcare sector, as they assess the impact of possible heightened US regulation on drug pricing.
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