European shares slip as U.S.-Iran talks show little progress

European equities slipped on Thursday, surrendering early stability as a diplomatic impasse between Washington and Tehran, tech sector warnings over artificial intelligence risks, and rising sovereign bond yields sapped market conviction. 

The STOXX 600 index fell 0.1%. Germany’s DAX and France’s CAC 40 slipped 0.2% each.

France’s stock market’s loss was somewhat capped after Christian Dior surged 15% following the Arnault family’s plans to consolidate the luxury group under its holding structure and make a cash offer for the minority stake it does not own.

London’s FTSE 100 inched up 0.1%, as Raspberry Pi Holdings did some heavy lifting. It jumped more than 13% after the company reported record first-half revenue and profitability and said full-year EBITDA is now expected to come in ahead of market consensus.

Middle east peace deadlock 

Expectations of an immediate diplomatic breakthrough at the United Nations General Assembly faded as U.S. and Iranian officials remained far apart on terms for a formal peace agreement and the reopening of the Strait of Hormuz, reigniting energy risk premia.

Sentiment in growth listings took a hit after global technology leaders voiced growing concern over near-term artificial intelligence deployment risks, monetisation timelines, and regulatory hurdles ahead of high-level tech panels in Washington.

Investors held elevated cash buffers as Chinese President Xi Jinping and U.S. President Donald Trump prepared for high-stakes bilateral talks in Washington later in the day, with markets eyeing prospective progress on trade relations and technology export protocols.