European stocks head for weekly losses amid global tech selloff

European shares opened sharply lower on Friday, with broad-based losses tracking a global market selloff as concerns over artificial intelligence (AI) valuations and spending weighed on investor sentiment. The decline wiped out the STOXX 600's weekly gains, putting the index on course to end the week in negative territory.

The pan-European STOXX 600 fell 1.6% to 644.72 points by 0810 GMT, while benchmarks across most major regional markets declined by more than 1%. The index was down around 0.2% for the week after Friday's losses erased earlier gains.

According to Reuters, European equities were relatively less affected than their Asian and US counterparts this week, reflecting the region's lower exposure to AI-related stocks.


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Media, healthcare and retail shares led the declines, falling more than 2% each. Investor concerns intensified over the possibility that a Democrat-led US Congress could impose restrictions on AI data-centre spending, adding to worries about stretched valuations, weak returns and debt-funded investments.

A slowdown in AI-related spending could also weigh on global economic growth, which has received significant support from investments by major technology companies.

Among individual stocks, semiconductor equipment maker Siltronic fell 2%, while ASMI declined 1.3%. Shares of AI infrastructure equipment makers Schneider Electric and Siemens Energy also traded marginally lower.

Read more: Japan's Nikkei slumps more than 5% as market rout deepens on AI worries

On the earnings front, Teleperformance plunged 18% after the outsourcing company lowered its full-year revenue growth outlook. Weakness in its trust and safety business more than offset growth in AI-powered and back-office services.

(Disclaimer: This article is based on inputs from agencies. These do not represent the views of The Economic Times.)