European and Asian markets showed positive momentum on Wednesday, marking a recovery after a challenging start to the week for U.S. technology stocks. The STOXX 600 Europe index and Germany’s DAX both increased by 0.6%, reaching record highs.

In Asia, Japan’s Nikkei gained 1%, while Hong Kong’s Hang Seng index edged up by 0.1%. Earlier in the week, U.S. shares faced a sell-off due to concerns regarding China’s DeepSeek artificial intelligence model, which poses a challenge to U.S. dominance in the sector.

• DeepSeek’s lower development costs compared to established models like ChatGPT have raised concerns.
• U.S. markets are heavily influenced by technology stocks, while European and Asian indexes are less dependent on this sector.

Additionally, Dutch semiconductor giant ASML saw a notable increase, with shares rising by 9% in Amsterdam after reporting earnings that surpassed expectations. This rise has brought ASML back to levels seen before the DeepSeek concerns.

📎 Related coverage from: barrons.com