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Europe Opens Cautiously After Weak Japanese Demand, With Pressure on Swiss Markets

Europe enters the session on a cautious note after weak Japanese spending, while pressure on the Swiss market is countered by economic support linked to AI. After Wall Street closed, Japanese household spending came in at -3.1 year over year, better than expected and the previous reading, but still negative. The monthly reading was 0.1, below expectations and the previous reading, making the improvement limited and weighing on the outlook for Japanese consumer-related stocks. As attention shifts to Europe, this result adds caution about the strength of Asian demand. It comes alongside a -2.62% loss for the KOSPI, while the Hang Seng rose; the clearest signal therefore remains weak Japanese consumption, with risk appetite varying across Asia. The Swiss index's -1.24% decline sets a cautious backdrop for European stocks, while AI news offers targeted support to companies tied to technology infrastructure and trade. The Trump administration allocated 6 billion dollars to AI and quantum computing initiatives, and the World Trade Organization raised its trade growth forecast to 3.9%, supported by the AI boom. These developments support activity and investment, but their effect on European corporate earnings depends on each company's exposure to those areas. The tone therefore remains balanced between weak Swiss performance and sector-specific support, with no evidence of a broad European rally.