Stock markets: Europe set for a weak start amid tensions over oil and AI. The Kospi plummets (-5.7 per cent) - Il Sole 24 ORE

European markets are poised for a cautious open, with investors taking a risk-off stance after a sharp selloff in Asia. South Korea’s Kospi index fell 5.7 per cent, a move that signals growing unease across global equity markets. Two pressures are converging: tensions surrounding oil supply and heightened uncertainty within the artificial intelligence sector. Together, they are prompting traders to reassess exposure to cyclical and growth-dependent assets.

The oil-related concerns typically translate into worries about energy costs feeding into broader inflation, potentially complicating central bank policy expectations. Meanwhile, the AI unease suggests that investors are questioning valuations or the regulatory and competitive landscape that has underpinned a long tech rally. These two themes, while distinct, both carry implications for corporate margins and forward earnings, making them closely watched by market participants.

For now, volatility appears likely to persist. The key is to observe how European sectors respond at the opening, particularly energy and technology, and whether any fresh statements or data provide clarity. The tone remains cautious as markets digest these crosscurrents.