Global Markets React to AI Selloff, Energy Shifts, and Geopolitical Tensions on October 13, 2026
Global markets experienced a mixed day as AI-linked shares saw a selloff, oil prices dipped amid supply risks, and investors prepared for upcoming U.S. inflation data and corporate earnings.
Newsnibs Staff
- 2026-10-14
- Updated 4:16 PM UTC
European chip stocks fell on Tuesday as a global selloff in artificial-intelligence shares spread from Asia, while other sectors on the continent moved higher, leaving major indexes mixed. ASML Holding shares dropped 1.8% and ASM International fell 2.3%, tracking declines in AI-linked stocks across Asian markets after Chinese chip maker CXMT announced a breakthrough in memory technology. Broadcom chief executive Hock Tan described some AI investors as "casino gamblers," a comment that circulated as the sector's valuations came under pressure.
Oil prices fell the same day, with Brent crude down 1.1% and West Texas Intermediate futures off 1.2%. Traders were weighing supply risks from attacks on Saudi Arabia against the prospect of additional Russian diesel reaching the market. Citi Research said Brent could fall as low as $65 a barrel by the second quarter of 2027 if shipping through the Strait of Hormuz returns to normal. President Trump said he had struck a deal with Russia on diesel supply, but analysts said the arrangement would not meaningfully ease prices.
The euro gained against the dollar. ING estimated the euro remains about 1.5% undervalued against the dollar even after recent gains. Sterling climbed to a 16-month high against the euro.
In the U.S., stock futures were mixed as banks began reporting third-quarter earnings. Tickmill Group said the "hurdle rate is rising" for companies to satisfy investors this earnings season. U.S. inflation data is due Wednesday.
BP's new chief executive, Meg O'Neill, inherited a company strategy built around oil and gas and said she will lay out her own plans in December. In Italy, Banca Monte dei Paschi pushed back on Intesa Sanpaolo's takeover bid, arguing the premium offered falls below sector averages. Stellantis reported third-quarter shipments of 1.29 million vehicles, a 1% decline from a year earlier. Czech arms maker CSG acquired a 9.5% stake in Canadian satellite company MDA Space. Publicis Groupe posted 5% organic revenue growth, with revenue totaling 4.61 billion euros, or $5.14 billion.
The International Monetary Fund forecast global growth of 3.1% for 2026. In China, economic weakness has left what is being called a "lost generation" of graduates struggling to find work; Ma Yongjian, 27, dropped out of a master's program and is cited as an example of the trend.
Iran is fortifying its nuclear sites and has threatened to escalate against the United States in response to potential attacks. In the U.S., a $300 million fund backing Trump-aligned projects drew more than half its donations from just ten megadonors, each contributing between $10 million and $25 million.
Photo by Maxim Klimashin on Unsplash
