LIVE MARKETS-Generalised selling; AI worries simmering

Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com.

GENERALISED SELLING; AI WORRIES SIMMERING

European stocks have seen broad-based selling in the first hour or so of trading, with the chip complex struggling again, while a more stable bond market did little to stem the slide in banking shares.

The broad STOXX 600 is down 0.7%, with tech off 1.9% .SX8P and banks down 1.3%. .SX7P

AI-exposed names are struggling. At the bottom of the STOXX 600, is Soitex .SOIT.PA down 6%, while Swiss engineering group , ABB ABBN.S is down 5.7% even after reporting record quarterly orders thanks to data centre spending.

A 30% slide in shares of South Korean AI services firm Elice Group on its market debut seems to have put a stop to Monday's small stabilisation in chip shares. The Philadelphia Semiconductor Index .SOX closed up 1.6% on Monday, snapping an eight-day losing streak. Eyes will be on US chip giants as premarket trading gets going.

Banks are also struggling down another 1%, and a punchy 11.5% off their August top. The blow up in the French bond market is hurting French players and seems to have sparked a wave of profit taking in the once high flying sector. .SX7P

The increasingly frayed European social fabric probably doesn't bode well for banks and their stocks either.

That in turn has weighed on banking-heavy indexes like those of Italy and Spain. .FTMIB, .IBEX

(Alun John)

EARLIER LIVE MARKETS POSTS:

EUROPE BEFORE THE BELL: LOTS OF WORRIES TO CHOOSE FROM CLICK HERE

MORNING BID: KOREAN CANARY IN THE AI COALMINE CLICK HERE