[MARKET ANALYSIS] European bourses suffer from the risk tone in Asia, as Tesla's cut in spending plans reignite AI worries

European bourses are under pressure this morning, following on from the weakness seen in Asia. In Hong Kong, the likes of Alibaba (-6.1%) and PDD (-3.6%) slipped after China’s CMRC urged e-commerce platforms to strengthen product quality controls and consumer protection. Over in South Korea, continued worries over the AI trade showed. Analysts point to Tesla (-4.8% pre-market) earnings as the source of the day’s weakness, as it pulls back its spending plans, whilst downside in Lam Research (-8.8% pre-market) also failed to help sentiment. Sectors highlight the negative bias. Telecoms, Food, Beverages & Tobacco and Health Care are the sector gainers. The underperformer is Basic Resources, followed by Banks and Tech. Key earnings include: SAP -0.9%, despite Q3 metric beats and sees FY26 cloud revenue at the upper end of its guided range; Nestle +1.4%, Q3 sales beat and reaffirms its FY26 sales growth target; Roche -0.5%, despite Q3 sales topping estimates and reaffirms FY outlook; Nokia -2.3%, despite Q3 profit beating expectations and expects supply chain constraints to continue in 2027. US equity futures follow the broader space lower, with underperformance in the NQ. Although Tesla is seemingly weighing on the equity space, Meta (-1.1% pre-market) did post upbeat earnings. Q3 revenue beat expectations and Q4 guidance was stronger than forecast, supported by continued AI momentum.