European shares ease as AI-driven tech selloff deepens

EUROPEAN shares inched lower on Friday (Oct 30) as technology stocks came under pressure from renewed concerns over AI investment returns, although the benchmark index remained on track for a monthly gain thanks to strong corporate earnings.

The pan-European Stoxx 600 index fell 0.25 per cent to 647.49 by 0809 GMT but was set to post both weekly and monthly gains.

Technology stocks led declines on Friday, with the sector index down 2 per cent, after earnings from Amazon and Intel reignited investor concerns about the sustainability of heavy AI-related spending and the returns it can generate.

Political uncertainty in France also weighed on sentiment this month, as the country faces mounting pressure from rising living costs and elevated government debt.

Still, robust earnings from the likes of ASML, Shell and Airbus reinforced confidence in the health of European corporates and lifted investor sentiment.

BP rose 1.1 per cent after posting third-quarter net income ahead of expectations, while German sportswear maker Puma jumped 4 per cent after quarterly earnings.

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Among other movers, Bayer gained 4.1 per cent after winning a trial on Thursday over claims by three women that its Roundup weedkiller caused their cancer.

Investors also awaited third-quarter euro zone gross domestic product figures later in the day. REUTERS