European shares flat as AI caution prevails; focus on defence stocks

European shares were flat on Tuesday as investors stayed cautious toward highly valued AI-related stocks while monitoring a NATO summit in Turkey for potential new defence contracts. The pan-European STOXX 600 index was unchanged at 650.84 points by 0713 GMT after closing just below record highs in the previous session. Technology led the decline, with the sector down 1.6%; ASML and Infineon each fell about 4%, and Siemens Energy slid 5.5% after Barclays downgraded it to “underweight” from “equal-weight.” Chip-stock concerns also weighed on broader sentiment, with Samsung Electronics shares slipping despite strong forecasts. Meanwhile, defence stocks edged higher, helped by Saab’s 5.3% jump after Morgan Stanley upgraded it to “overweight.”