07.07.2026 10:40
The NATO Leaders Summit, which began in Ankara, was also the focus of global markets. While investors closely watched the new defense agreements expected to be announced at the summit, a cautious trend dominated European stock exchanges. As AI-focused technology stocks lost value, shares of defense companies rose in anticipation of decisions to come from the summit.
European markets started the day cautiously ahead of the NATO Leaders Summit, which has drawn global attention. While investors closely tracked new defense agreements expected to be announced during the summit, valuation concerns in AI-focused technology stocks weighed on stock markets.
EUROPEAN STOCKS TRADED FLAT
Europe's benchmark STOXX 600 index displayed a flat outlook on the new trading day after closing near record levels in the previous session.
Sales were particularly notable in the technology sector. Shares of chip equipment maker ASML and semiconductor manufacturer Infineon fell by about 4 percent, while Siemens Energy shares declined by 5.5 percent following a downgrade by brokerage Barclays.
VALUATION CONCERNS IN AI STOCKS
One of the main reasons for the cautious market sentiment was concerns that AI and chip companies, which have surged in recent months, might be overvalued.
Despite strong expectations from South Korean tech giant Samsung Electronics, its shares dropped, and US Nasdaq futures also declined.
EYES ON DEFENSE AGREEMENTS FROM NATO
Defense companies have become the focus of investors due to new agreements expected to be announced at the NATO Leaders Summit.
Following US calls for European countries to increase defense spending, new defense projects and collaborations are anticipated to be unveiled at the summit.
With this expectation, the European defense index maintained its upward trend, while shares of Swedish defense company Saab gained over 5 percent after Morgan Stanley raised its recommendation.
SHELL SHARES ROSE
Shares of energy giant Shell rose by about 2 percent after the company revised its second-quarter natural gas outlook upward.