A look at the day ahead in European and global markets from

Satoshi Sugiyama.

South Korea's Samsung Electronics ( SSNLF ) came out with a

bang, forecasting an eye-popping 19-fold jump in second-quarter

operating profit from a year earlier and topping its combined

earnings over the past three years.

Yet investors still found reason to flinch: Samsung shares shed

more than 8%, while South Korea's benchmark index dropped 6.7%,

as traders questioned whether the AI demand fuelling those

bumper earnings can keep delivering. Taking cues from South

Korea, MSCI's broadest index of Asia-Pacific shares outside

Japan lost 1.7%.

The moves offer a cautionary tale of the volatility coursing

through equity markets as the AI trade broadens beyond

semiconductors and chip-equipment makers to energy groups,

copper miners and lithium suppliers.

"Investors still want to be exposed, but they are very

nervous about valuations," said Michael McCarthy, market

strategist at Moomoo Australia.

In early European futures, pan-region Euro Stoxx 50 futures

were down 0.34%, German DAX futures slipped

0.3% and FTSE futures were 0.15% higher. The S&P 500

e-minis were up 0.07%.

U.S. President Donald Trump will be in Turkey to attend a NATO

leaders summit. Ahead of his arrival, European government

leaders are planning to unveil arms deals ​worth tens of

billions of dollars, showcasing their stepped-up commitment to

regional defence.

In currencies, the yen gained 0.15% against the

greenback to 161.83 per dollar, pulling back from the weaker

side of 162, with traders still on guard for official

intervention.

Key developments that could influence markets on Tuesday:

- Bank of England releases financial stability report

- German industrial output for May

- British Halifax housing data for June

- Canadian leading index for June, trade balance for May

- U.S. trade data for May

(Editing by Kate Mayberry)