06:54 AM EST, 01/27/2025 (MT Newswires) -- European bourses tracked moderately lower midday Monday on media reports that emergent China-based AI outfit DeepSeek has developed a competitive, open AI chat model that does not require more-expensive and powerful semiconductors, or computer chips, to operate.

Tech and oil issues retreated, while property and food issues bucked trends to gain. Retail stocks held firm.

On continental exchanges mid-session, shares in Dutch chipmaker ASML fell by 9%, while Germany's Siemens Energy, hardware-maker for AI infrastructure, lost near 20%. France's digital automation enterprise Schneider Electric declined by 10%.

Investors also eyed Wall Street futures signaling solid red, but uneven closes overnight on Asian exchanges.

In economic news, Germany's business climate improved in January, with the nation's Business Climate Index inching up to 85.1 from 84.7 in December, the Institute for Economic Research (Ifo) reported.

The pan-continental Stoxx Europe 600 Index was 0.8% mid-session.

The Stoxx Europe 600 Technology Index was off 5.3%, and the Stoxx 600 Banks Index lost 0.4%.

The Stoxx Europe 600 Oil and Gas Index was off 2%, but the Stoxx 600 Europe Food and Beverage Index inclined 1.2%.

The REITE, a European REIT index, rose 1.4%, but the Stoxx Europe 600 Retail Index was flat.

On the national market indexes, Germany's DAX was down 1.2%, and the FTSE 100 in London was down 0.2%. The CAC 40 in Paris was off 0.9%, and Spain's IBEX 35 was steady.

Yields on benchmark 10-year German bonds were lower, near 2.47%.

Front-month North Sea Brent crude-oil futures were down 0.1% to $77.47 per barrel.

The Euro Stoxx 50 volatility index was up 18% to 17.61, but still indicating below-average volatility for European stock markets in the next 30 days, a positive signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.