HSBC has agreed to use artificial-intelligence models developed by France’s Mistral AI, marking a significant win for Europe’s surging tech sector and adding further momentum behind one of the region’s most closely watched AI startups. The deal underscores Mistral’s growing commercial traction as European firms race to build homegrown alternatives to U.S. platforms.
Geopolitics also remained in focus after U.S. Secretary of State Marco Rubio said peace negotiations over Ukraine have made “solid progress.” American envoy Jack Witkoff is expected in Moscow in the coming days for a new round of talks aimed at ending the conflict that is nearing its fourth year.
In the auto sector, Chinese manufacturers lost share in European markets in October across both hybrid and battery-electric segments, slipping to roughly 12% on average. The retreat comes as European and U.S. brands regain ground ahead of a potentially more protectionist regulatory backdrop.
Global markets entered December on the back foot. Asian equities fell about 1%, while Europe dipped roughly 0.5% in early trading. U.S. equity futures also pointed lower—between 0.5% and 1%—as investors grow increasingly uneasy amid a quiet macro calendar and a lack of fresh economic catalysts.
Recent PMI releases painted a picture of diverging regional momentum within Europe:
- Euro Area: The bloc continues to show modest expansion, driven largely by resilience in services even as manufacturing sinks deeper into contraction. The composite PMI indicates overall growth remains steady.
- Germany: Europe’s largest economy maintained positive momentum in composite activity, though factory output remains under pressure.
- France: Manufacturing weakness intensified, highlighting the widening gap between a services-led recovery and a deteriorating industrial sector.
- United Kingdom: Outside the euro zone, the UK posted its first manufacturing PMI above 50 in more than a year, hinting at the early stages of a potential rebound.