Siemens Energy falls 20% as European stocks close lower amid AI concerns

This was CNBC's live blog covering European markets.

European markets closed slightly lower on Monday as investors in the region reacted to a potential artificial intelligence breakthrough out of China.

The Stoxx 600 index pared steep losses from earlier in the day to close down 0.07%. Technology stocks led to the downside falling 1.5%.

Weak tech performance was mirrored in Asia markets and in the U.S. as the success of Chinese AI startup DeepSeek sparked concerns over incumbent U.S. giants' global leadership in AI.

Shares of European chip firms ASML and ASM International dropped 7% and 12%, respectively.

Shares of companies with ties to the AI supply chain also nosedived.

Siemens Energy — which uses Nvidia technology in its own operations and has touted its investments in power grids to help meet demand for the energy required to operate the tech — was down 19.95% at market close. Schneider Electric, which collaborates with Nvidia on designs for AI data center cooling systems, closed 9.5% lower.

European traders are also gearing up for a busy period of earnings this week, as well as the European Central Bank's latest interest rate decision on Thursday.

Shares of budget airline Ryanair closed higher 3.3% after the company posted better-than-expected quarterly profit, but cut its full-year 2026 traffic growth forecast in light of aircraft delivery delays at Boeing.

Earnings later this week will include LVMH, Shell, ASML, Roche, Deutsche Bank and Nokia.

On Thursday, the euro zone and core European economies France and Germany will report their latest growth data, and the European Central Bank and the U.S. Federal Reserve will be closely watched as they announce their latest monetary policy decisions.

Overnight in the Asia-Pacific