EU Mid-Market Update: AI Spending Concerns, TSMC Capex, UK GDP Data

European markets are digesting a mixed batch of corporate and macro headlines. The big question is how long the flood of AI-related spending can continue, as TSMC announced a sharp increase in capital expenditure despite market concerns about margin compression. The chipmaker's capex blowout signals confidence in AI demand, but investors are wary of profitability pressures.

In the UK, stronger-than-expected GDP figures are reinforcing expectations that the Bank of England will maintain a tightening bias. The data points to a resilient economy, adding to the case for further rate hikes.

The overall tone in mid-session trading is cautious, with the AI spending debate and central bank policy outlook keeping risk appetite in check.