Global Market: European shares slip as AI chip rally fails to offset Middle East concerns

European shares slipped as the pan-European STOXX 600 index fell 0.1 percent to 641.07 amid Middle East tensions, with oil prices climbing to around $85 per barrel after Iran-US tensions intensified and Tehran reportedly shut the Strait of Hormuz. Technology stocks gained 1.4 percent led by ASML raising its 2026 forecasts, luxury stock Richemont surged 5.3 percent on strong jewellery demand, while software stocks declined with SAP falling 2 percent. Investors remain cautious balancing encouraging earnings against geopolitical risks and elevated commodity prices.