European equities fell on Wednesday, extending a global selloff that gathered pace across U.S. and Asian markets as investors questioned whether artificial-intelligence winners and mega-cap tech shares can sustain premium valuations. By 08:15 GMT, Germany’s DAX was down 0.6%, France’s CAC 40 slipped 0.4% and the U.K.’s FTSE 100 declined 0.2%.

Wall Street’s tech-led retreat— the Nasdaq Composite fell 2% on Tuesday—spilled into Asia overnight, where Japan’s Nikkei 225 dropped more than 2% and Korea’s KOSPI briefly slumped as much as 6% before paring losses. The wobble intensified after senior executives at major U.S. banks warned that sky-high multiples around AI and cloud infrastructure could be vulnerable to a pullback.

Earnings headlines added stock-specific volatility. Novo Nordisk lowered its full-year profit outlook as it embarked on a sweeping overhaul to sharpen focus on diabetes and obesity treatments, and said it would cut roughly 9,000 jobs worldwide. BMW widened its third-quarter core margin as it trimmed R&D on EVs and leaned on upcoming all-electric models to defend share, particularly in China. In healthcare, Fresenius raised full-year EBIT growth guidance on stronger pharma and steady hospital results at Helios, while Siemens Healthineers trimmed its fiscal-2026 earnings view on tariff and FX headwinds despite expecting 5%–6% revenue growth. In the U.K., Marks & Spencer reported a sharp first-half profit drop after a major cyberattack hampered online operations and pressured margins for weeks.

Macro signals were mixed. German factory orders rose 1.1% month-on-month in September, rebounding from a 0.4% decline, but investors largely looked through the print with services PMI figures due later in the session. With the European Central Bank holding rates steady last week and widely expected to do the same in December, policy is seen “in place” for now, leaving earnings quality and guidance as the main near-term equity catalysts.

In commodities, crude steadied after a U.S. inventory build stoked demand concerns: Brent inched down 0.1% to $64.40 a barrel and WTI eased 0.1% to $60.50. The stabilization did little to shift the broader risk tone, which remains fragile as investors reassess growth, liquidity, and valuation assumptions heading into year-end.

Bottom line: A crowded AI trade, cautious guidance from bellwethers, and only tentative signs of industrial stabilization are keeping European equities on the defensive. With central-bank policy largely on hold, the market’s next moves will hinge on earnings resilience, revisions to 2025 profit outlooks, and any cooling in cross-asset volatility.