FRANKFURT: European shares ended a volatile week lower on Friday, as worries about elevated valuations of technology-related stocks persisted, while Britain’s ITV jumped on talks to sell its broadcasting division.
The continent-wide STOXX 600 index closed down 0.6percent at 564.79 points. It logged its biggest two-week loss since early September, when sovereign debt worries and political uncertainty in France resurfaced. While there was no specific reason for this week’s selloff, analysts point to a myriad of factors, including elevated valuations in tech-related stocks, a US government shutdown and hawkish Federal Reserve commentary.
“The moves that we have seen captured just this heightened nervousness after this robust AI-fueled rally (that) certainly has driven markets in recent months... The extended US government shutdown is just adding to those overall investor jitters,” said Laura Cooper, head of macro credit at Nuveen.
“Europe is just caught up in the spillover of the broad risk-off sentiment that’s largely stemming from the US price action.” Technology stocks, down 2.1 percent on the day, were among the top decliners on the week, while tech equipment makers such as Schneider Electric and Siemens Energy logged heavy losses. Heavyweight banks declined 0.9 percent.
On the other hand, beaten-down auto stocks, which added a further 0.6 percent on Friday, have rallied on expectations that Nexperia will resume chip shipments from China. Aumovio gained 9.8 percent after reporting strong third-quarter results. The chief executive of the German car parts supplier told Reuters that the company has secured deliveries of Nexperia’s chips from China.
ITV jumped 16.6percent, to top the STOXX 600 index, after saying that it was in talks with pay-TV company Sky, owned by Comcast, over a potential sale of its media and entertainment unit for 1.6 billion pounds (USD2.15 billion) including debt. Investors also scrutinized a series of earnings updates to gauge the health of corporate Europe.
“Overall, the earnings have been positive. More recently, we’re seeing estimates stabilizing for 2026... (which) is welcome for investors. The two key themes that dominated the earnings season last quarter around euro strength and tariff risks are actually dissipating. So that is providing a bit more of a constructive backdrop for the earnings season so far,” Cooper added. Rightmove slumped 12.5percent after Britain’s biggest property portal forecast slower profit growth in 2026. British Airways-owner IAG lost 11.6percent after reporting quarterly results and cautioned about softness in the US economy cabin market.
Monte dei Paschi di Siena gained 4.4percent after the Italian lender posted third-quarter profit that topped estimates and raised its 2025 outlook. Meanwhile, Novo Nordisk lost 5.1 percent after the drugmaker and peer Eli Lilly struck a deal with the US to lower prices of their blockbuster GLP-1 weight-loss drugs.
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