Novo Nordisk flags flutter outside their office in Bagsvaerd, on the outskirts of Copenhagen, Denmark, July 14, 2025.
Tom Little | Reuters
LONDON — European stocks are expected to open lower, mirroring global declines as concerns grow over sky-high tech valuations.
The U.K.'s FTSE index is seen opening 0.27% lower, Germany's DAX down 0.62%, France's CAC 40 down 0.56% and Italy's FTSE MIB 0.76% lower, according to data from IG.
The lackluster sentiment seen in European bourses Wednesday comes amid a similar picture in U.S. and Asia Pacific markets overnight as investors appear increasingly concerned about the lofty valuations of AI-related stocks and tech companies, fearing a bubble is forming.
Overnight, futures tied to the tech-heavy Nasdaq slid as investors continued to grapple with where megacap tech stocks head from here. Meanwhile, Japan's Nikkei 225 plunged below the 50,000 mark overnight amid a wider decline in Asia markets as investors fled AI-related stocks.
Market sentiment also took a knock yesterday when the CEOs of Goldman Sachs and Morgan Stanley warned investors to brace for a drawdown in markets over the next two years.
It's another busy day for earnings in Europe on Wednesday with Novo Nordisk, BMW, Leonardo, Orsted and Vestas all due to report third-quarter figures.
Sweden's Riksbank will announce its latest interest rate decision on Wednesday, and on the data front, we'll be seeing the latest Germany factory orders, U.K. new car sales and European purchasing managers' index (PMI) data.
— CNBC's Lee Ying Shan and Sarah Min
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