European semiconductor stocks show mixed performance following last week's AI investment selloff. ASML Holding dropped 1% while Infineon Technologies gained 1.3%. The volatile trading comes amid heightened Middle East tensions after Israel and Iran exchanged fire. Investors remain cautious about AI investments despite the sector's long-term potential, with BE Semiconductor Industries down 1.6% and STMicroelectronics up 1%.

Orange defended its €20.35 billion acquisition of SFR in France, rejecting the need for regulatory concessions like those in Vodafone's UK merger. CEO Christel Heydemann emphasized synergies and network efficiencies as justifications. The deal partners will focus investments on resilience, cybersecurity and AI. Orange shares rose 1.9% while Bouygues fell 0.8% as the market digested the transaction's implications.

Tencent reinforced its strong liquidity position with a new note issuance under its $30 billion program. Moody's assigned an A1 rating to the proposed U.S. dollar and yuan notes, citing the company's leadership in gaming and its Weixin/WeChat ecosystem. The issuance will support future investment needs in new technologies, highlighting the tech giant's financial flexibility amid evolving market conditions.