European Markets Tread Cautiously Following DeepSeek’s Shock To Global Tech

by THEFUTURE.TEAM

January 28, 2025

European stocks showed signs of recovery on Tuesday after the worldwide sell-off triggered by China’s DeepSeek, which unveiled an AI model built at a fraction of the cost of its American counterparts. The announcement sparked widespread concerns over the future profitability of the Artificial Intelligence sector, as well as the increasing reliance on pricey chips.

The Stoxx 600 index rose by 0.17%, buoyed by technology stocks, with Sartorius leading the charge. The biopharmaceutical company surged nearly 16%, thanks to a preliminary 2024 profit report that exceeded expectations and a “modestly positive” outlook for 2025.

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Among the regional indices, Germany’s DAX inched up 0.23% to 21,331 points, while the UK’s FTSE 100 made a more modest gain of 0.21%, reaching 8,521 points. On the flip side, France’s CAC 40 dropped by 0.30% to 7,883 points.

Peripheral markets showed mild optimism, with Italy’s FTSE MIB edging up by 0.21%, and Spain’s IBEX 35 moving up just 0.09%.

After Monday’s heavy losses, the STOXX Europe 600 Technology sector, which had fallen 3.3% due to setbacks from Dutch chipmaker ASML (-7%) and ASM International (-12%), found some stability, rebounding into positive territory by Tuesday.

Alten saw its stock jump 7.8% following its annual report, while Siemens Energy climbed 3.4% on news that it had exceeded revenue expectations for the first quarter, buoyed by strong demand for offshore wind turbines.

Results from SAP, Foxtons Group, and Logitech are expected later on Tuesday, adding more potential momentum to the market.

Across the Atlantic, the U.S. market also took a hit. The Nasdaq and S&P 500 saw sharp declines, as DeepSeek’s model caused ripples across tech stocks. However, the Dow Jones industrial average managed to reverse its losses, closing at its highest point of the day, fueled by rallies in Johnson & Johnson and Salesforce.

Nvidia, the chip giant at the heart of the tech sector, experienced a staggering $597 billion market capitalization loss on Monday—an unprecedented single-day wipeout in U.S. history. Its stock plummeted 17%, closing at $118.58, marking its worst trading day since March 16, 2020, during the early stages of the Covid-19 pandemic.

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Central Bank Of Cyprus Balance Sheet Reflects Strong Eurosystem Position

by THEFUTURE.TEAM

February 17, 2026

Overview Of Financial Stability

The Central Bank of Cyprus (CBC) has released its latest balance sheet, reaffirming its steadfast role within the Eurosystem. The balance sheet, featuring total assets and liabilities of €29.545 billion, underscores the institution’s stable financial posture at the close of January 2026.

Asset Allocation And Strategic Holdings

Governor Christodoulos Patsalides issued the balance sheet, which details the CBC’s asset composition under the Eurosystem framework. Notably, the bank’s gold and gold receivables amounted to €1.635 billion, providing a significant hedge and stability to its balance sheet. Additional asset categories include claims on non-euro area residents denominated in foreign currency at €1.099 billion, while claims on euro area residents in both foreign and domestic currency add further depth to its portfolio.

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The most substantial asset category, intra-Eurosystem claims, reached €19.438 billion, an indication of the CBC’s deep integration with its European counterparts. Furthermore, euro-denominated securities held by euro area residents contributed €6.587 billion. Despite a marked emphasis on these areas, lending to euro area credit institutions in monetary policy operations recorded no activity during the period.

Liability Structure And Monetary Policy Implications

On the liabilities side, banknotes in circulation contributed €3.218 billion. Liabilities to euro area credit institutions associated with monetary policy operations were notably the largest single category, totaling €17.636 billion. Supplementary liabilities included those to other euro area residents, which aggregated to €4.989 billion, with government liabilities playing a predominant role at €4.754 billion.

Other liability items, such as claims related to special drawing rights allocated by the International Monetary Fund at €494.193 million, and provisions of €596.571 million, further articulate the CBC’s exposure. Revaluation accounts stood at €1.643 billion, and overall capital and reserves were confirmed at €333.822 million, completing the picture of a well-capitalized institution.

Conclusive Insights And Strategic Alignment

The detailed breakdown illustrates the CBC’s sizeable intra-Eurosystem exposures, reinforcing its central role within Europe’s monetary landscape. With an asset-liability balance maintained at €29.545 billion, the CBC’s financial position remains robust, indicating a commitment to structural stability and strategic risk management.

This fiscal disclosure not only provides transparency into the CBC’s operations but also serves as a benchmark for comparative analysis among other central banks within the Eurosystem, highlighting the intricate balance between asset liquidity, regulatory oversight, and monetary policy imperatives.

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