European shares slip as trade uncertainty, AI-disruption fears weigh

Feb 24 (Reuters) - European shares slipped on Tuesday as investors avoided large bets against an uncertain trade backdrop, while banks tanked, tracking a Wall Street selloff after artificial intelligence-disruption concerns resurfaced.

The pan-European STOXX 600 index .STOXX was down 0.2% at 630 points by 0815 GMT.

A resurgence in trade uncertainty dominated global markets this week as U.S. President Donald Trump's new blanket tariff rate is expected to take effect from Tuesday, fuelling ambiguities about trade deals struck last year.

Against this backdrop, the European Parliament decided to postpone for a second time a vote on the trade deal struck between the U.S. and Europe last year.

Meanwhile, banks .SX7E, .SX7P tumbled more than 1.6% each, leading sectors lower as they tracked a Wall Street selloff from Monday, with renewed concerns that newer AI models could disrupt traditional businesses.

Providing some relief were a few better-than-expected corporate reports.

French vouchers and benefit cards provider Edenred gained 1.4% after reporting 2025 core earnings above market expectations, citing rising sales and initial benefits from its cost-cutting and efficiency plan.

Shares of Forvia climbed 2.2% after the car parts supplier forecast higher operating margin of between 6% and 6.5% in 2026.