European shares slip as AI stocks weigh; US jobs data in focus

European markets slipped on July 2 as investors weighed weakness in AI-related stocks and looked ahead to the United States jobs report for clues on interest-rate policy. By 0704 GMT, the pan-European STOXX 600 index fell 0.1% to 638.27 points. AI equities in Asia and on Wall Street had posted sharp declines overnight as the sector cooled after a strong prior-quarter run that lifted valuations. The STOXX 600 technology index dropped 1.5%, led by Soitec down 5.1% and Aixtron down 3.6%, though Europe’s smaller tech exposure helped limit the drag. Later in the day, markets will focus on US June nonfarm payrolls as the Federal Reserve has indicated it will stop issuing forward guidance, increasing scrutiny of economic data.