European shares fall as oil hits five-month high; AI earnings in focus

European shares fell for a second consecutive day on Tuesday, driven by rising crude oil prices and investor caution ahead of key AI company earnings reports later this week. The pan-European STOXX 600 index dropped 0.6%, with semiconductor firms like ASML and ASMI declining over 3%. Crude oil climbed to a five-month high above $110 a barrel following Houthi attacks on Saudi targets, while French government bond yields eased after protests highlighted fiscal challenges. Investors are scrutinizing earnings from major tech firms, including SpaceX, Netflix, Meta, and Tesla, to assess whether massive AI investments are yielding returns. The euro strengthened slightly against the dollar, and the yen rose after strong demand for Japanese government bonds. Gold slipped 0.4% to $4,122 an ounce, while bitcoin fell 0.7% to $81,339.50. European Central Bank and Bank of England officials are scheduled to speak, potentially influencing interest rate expectations.