[MARKET ANALYSIS] European bourses climb, helped by the lack of tech giants as global chip names continue to fall

Sessions of this shape, where a US mega-cap tech selloff hits Asia and then Europe opens relatively resilient, tend to resolve into a familiar rotation pattern: index-level weakness concentrates in the tech-heavy benchmarks while the broader market catches a bid, with European bourses historically benefiting precisely from their thin weighting in the names driving the decline. The distinction worth drawing here is between a fundamental deterioration and a positioning flush: commentary on AI buildout financing and casino-like sentiment, layered on top of a survey showing tech already the most crowded trade among fund managers, is the signature of the latter, and crowded-position unwinds have tended to be sharp but mean-reverting absent a genuine earnings trigger. On the corporate side, the luxury print follows an established script: headline beats do not protect the stock when the core fashion division misses, and China demand commentary remains the swing variable for the whole peer set. US futures signalling underperformance in the Nasdaq while the broader tape holds is consistent with the rotation read rather than a risk-off one. What matters next is whether the AI-financing narrative gets echoed by other suppliers or hyperscalers, and whether the US bank earnings due this session shift attention back to rate and credit fundamentals.