- DAX (DE40) futures lose 1.3%; European stock market under pressure
- Ifo business sentiment expectations index from Germany below forecasts; slightly better assessment of current conditions and business sentiment
- Technology stocks lose the most, shaken by the success of China's DeepSeek
- VIX volatility index rises nearly 20% before Wall Street opens
Markets are feeling fear today ahead of the opening of the US stock market, after stocks related to artificial intelligence infrastructure took a dive. The reason for the sell-off is the DeepSeek V3 AI model, which was trained in China with minimal investment compared to US counterparts like ChatGPT from OpenAI. At the same time, 'Chinese AI' matches the most efficient Western counterparts in tests, and in some indicators surpasses them.
As a result, the market fears that the situation will lead to a drastic change in the approach to scaling artificial intelligence and lower the interest of companies in building huge data centers or buying expensive AI chips. The main 'sufferer' on the German stock market is Siemens Energy, which was expected to reap massive profits from infrastructure investments in the AI sector, in the US (data networks). The German company's shares are down more than 20% today. However, since the share of technology stocks in the index is small, the DAX is losing relatively little compared to US indices.
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Ifo indices from Germany (for January):
- Expectations:84.2 forecast 85 vs. 84.4 previously
- Current situation assessment: 86.1 forecast 85.4 vs. 85.1 previously
- Business climate: 85.1 forecast 84.8 vs 84.7 previously
DE40 (H1)
The German stock market is seeing declines today. Technology-related stocks such as Siemens Energy, SĂśSS MicroTec, and Aixtron, among others, are losing the most. The ADRs of Nvidia, AMD, Tesla, and Amazon shares are losing heavily. The index is approaching a test of the EMA200 on the hourly interval.
Source: xStation5
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