Concerns over the valuation of AI companies have led to a deterioration in market sentiment, resulting in increased costs for credit default protection on euro-denominated bonds. A report from Deutsche Bank strategists highlights that worries about the technology sector have overshadowed investor optimism regarding progress in U.S.-Iran negotiations. According to data from S&P Global Market Intelligence, the iTraxx Europe Crossover index, which tracks euro high-yield credit default swaps, rose by 3 basis points to 250 basis points. Meanwhile, the iTraxx Europe Main index, which monitors euro investment-grade credit default swaps, increased by 1 basis point to 52 basis points.
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