LIVE MARKETS-Before the bell: it's risk off in Europe

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BEFORE THE BELL: IT'S RISK OFF IN EUROPE

European shares were set for a sharply lower start on Monday as traders fretted over the impact of a low-cost Chinese artificial intelligence app on high-flying Western tech stocks.

Frankfurt-listed shares in ASML ASML.AS, which releases its numbers on Wednesday, and other local AI darlings like Schneider Electric SCHN.PA and Siemens Energy ENR1n.DE declined over 3%. That pushed EuroSTOXX50 futures down 1.3% in their sharpest drop in almost 6 weeks.

Software maker SAP SAPG.DE, which also has results this week, fell 1.7% in Frankfurt. MAG 7 stocks in Frankfurt were hit even harder, led by a slump in Nvidia NVDA.O shares. Nasdaq futures fell 2.6%. NQCv1

Illustrating the risk-off mood, Bitcoin BTC= fell 6%.

Meanwhile the start of the earnings season in Germany offered no big cheer. The country's top chemical maker BASF BASFn.DE reported a big miss in annual earnings, weighed by impairments on battery materials and restructuring costs.

Elsewhere, budget airline Ryanair RYA.I beat profit forecasts thanks to improving fares, but revised down its passenger outlook on Boeing aircraft delivery delays.

In M&A, Swiss testing and inspection group SGS SGSN.S ended talks over a potential $30 billion merger with French rival Bureau Veritas BVI.PA after the two failed to reach a deal.

(Danilo Masoni)

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