Meta's AI assistant revives tech optimism, European markets eye France
Investor enthusiasm for AI has returned following strong demand for Meta Platforms' Muse assistant, which has revived optimism and boosted chipmakers and the Nasdaq. European futures point to a higher open, though French markets face scrutiny over long-term finances, with the cost of insuring French debt rising. Attention also remains on potential US-Iran talks impacting oil prices.
Investor enthusiasm for the AI trade has returned after a strong reception to Meta Platforms' Muse assistant since its US launch, while softer oil prices also improved risk sentiment. Attention is on a high-stakes meeting between Donald Trump and Xi Jinping later this week, with investors watching for signs the leaders of the world's two largest economies can prevent a further deterioration in relations. AI is expected to be near the top of the agenda after a proposal for a new safety notification mechanism for the two leaders to consider.
Facebook-parent Meta launched Muse two weeks ago in the US and says the AI assistant can autonomously send emails, sell a car and book travel on a person's behalf. The company has since seen strong demand and usage. The response helped lift chipmakers and drove the tech-heavy Nasdaq to a record high. 6% and Taiwan stocks gaining about 1%.
European futures pointed to a stronger open. Brent crude futures were above $100 a barrel after falling for four straight sessions, as hopes of US-Iran talks lifted sentiment following Trump's remarks that he would be open to meeting Iranian President Masoud Pezeshkian, who is due in New York this week for the UN General Assembly. French markets will remain in focus as investors weigh concerns over the country's long-term finances. The cost of insuring French government debt against default rose to its highest level since March 2020 on Monday, while French bonds, or OATs, were the worst-performing major-economy bonds in 2026.
Later on Tuesday, markets are due to watch euro zone consumer confidence for September and Kingfisher Plc earnings. The early signs of success for Muse follow a 10-day stretch that has left the largest AI labs facing renewed concern that their creations could threaten humanity.