Europe Credit Protection Costs Rise as AI Valuation Fears Grow

Investor risk appetite has weakened as concerns deepen that artificial intelligence company valuations may be too high, pushing up the cost of euro-denominated credit protection. According to Jin10, investors have questioned how long the AI sector rally can last, prompting selling in technology stocks and a reduced preference for risk assets. S&P Global Market Intelligence said the iTraxx Europe Crossover credit default swap index, which measures eurozone high-yield credit risk, rose 2 basis points to 253 basis points.