[MARKET ANALYSIS] European bourses continue to fall, with tech resuming last week's selloff

• European bourses (STOXX -0.7%) are lower again on Tuesday, not helped by the risk tone in Asian equities, while updates from several companies also disappointed (see more below). Focusing on South Korea, Elice had a poor debut, slumping as much as 30%. This can have a read-across for the tech space as Elice is a data-centre firm which provides AI cloud services as well as AI-based education and business software. To note, the IPO price was set before the recent sell-off in AI-related stocks, exacerbating the downside on debut day.
• Sectors highlight the negative bias. Health Care tops the sector pile, with Optimised Personal Care and Food, Beverages & Tobacco rounding out the top 3. To the downside reside Industrials, with Tech and Basic Resources following closely behind.
• Key movers include: ABB -4.6%, despite orders that surpassed expectations on high demand for electric components, while also announcing a JV with Mitsubishi Electric; Schneider Electric -2.3%, read-across from tech selloff and the launch of its EUR 6bln capital increase; Solvay -5.1%, Q3 Adj. EBITDA missed estimates due to the Middle East conflict.
• US equity futures are mixed, with the NQ underperforming as it gives back some of Monday’s gains. Plenty of earnings to keep an eye on today, which include RTX, GM, GE Aerospace and SpaceX.

Multi-day selloffs concentrated in tech and AI-adjacent names have historically followed a familiar sequence: an initial repricing of crowded growth exposures, a weak debut or two in the IPO pipeline as deals priced before the drawdown meet a changed tape, and then a test of whether the selling broadens into cyclicals or stays contained. The failed debut of an AI infrastructure name is the classic tell of the second stage, since IPO pricing lags the secondary market and poor first-day performance tends to chill the primary calendar rather than mark a floor. Sector leadership here fits the established defensive pattern, with health care and staples on top and industrials, tech and basic resources at the bottom, the configuration that has accompanied past risk-off legs tied to growth-stock unwinds. The single-stock detail matters for transmission: capital increases launched into a falling tape, as with Schneider, have tended to weigh on the issuer and its electrification peer set regardless of underlying order strength, while ABB selling off on an orders beat is the signature of positioning-driven sessions where good prints do not clear. The near-term calendar is the large US industrials and aerospace reporting slate, which in comparable episodes has determined whether the European weakness is idiosyncratic or the front edge of a broader industrials repricing. The distinction worth drawing is between a tech-led valuation correction and a macro growth scare; defensives leading with resources also lower leans toward the former.