European asset managers dip in U.S. read across as AI worries extend to financials

The pan-European financial services .SXFR index falls around 1.7% in a read across from U.S. brokerages' shares tumbling on Tuesday due to wealth management startup Altruist AI-enabled tax planning features, sparking disruption fears in the sector

European peers such as Amundi AMUN.PA, DWS Group DWSG.DE, FinecoBank FBK.MI, CVC CVC.AS, Banca Generali BGN.MI fall in a range between 2% and 8%

The U.S. selloff reflects growing investor anxiety toward legacy financial and tech firms as AI-first startups automate complex tasks that were long the exclusive domain of expensive human advisers

A Milan-based trader flags fears of automation in brokerage services posing challenges for asset management firms

"We see this development as entirely expected in light of advances in AI capability and recent product launches in adjacent industries," Royal Bank of Canada (RBC) says in a note

RBC adds that, if shares keep a volatility trend, expects this to reignite the man versus machine debate in delivery of financial advice or wealth management