Market Overview

European stock markets mostly closed lower on Monday, with investors focusing on upcoming fourth-quarter earnings reports from major companies like Shell, ASML, Rocke, and Deutsche Bank. Additionally, inflation data from Germany and Spain are highly anticipated.

Tech Sector Impact

The tech sector experienced a significant downturn following a breakthrough by Chinese AI startup DeepSeek, leading to a slump on Wall Street. Nvidia's shares notably dropped by 13%, reflecting the sector's volatility.

Index Performance

The DAX index fell by 0.50%, largely due to a 20.21% crash in Siemens Energy AG shares. The Euro Stoxx 50 and CAC 40 also saw declines, with Schneider Electric's shares plummeting by 9.22% on both indexes. Conversely, the FTSE 100 remained stable.

Currency Movements

On the currency front, the euro strengthened slightly against the dollar, trading at $1.05075 by 5:29 pm CET. Meanwhile, the pound sterling held steady against the dollar at $1.24838.