European shares ease as AI-driven tech selloff deepens

European shares slipped on Friday (Oct 30) as technology-focused stocks faced renewed pressure over the sustainability of AI-related investments, although the broader market remained on track for monthly growth driven by strong corporate earnings. The Stoxx 600 index declined 0.25 percent to 647.49 by 0809 GMT but was poised to achieve gains for both the week and the month.

Technology stocks drove the downturn, with the sector index falling 2 percent after Amazon and Intel's earnings reignited investor doubts about the long-term viability of heavy AI spending and the returns it could generate. Political uncertainty in France further dampened sentiment, as France grapples with rising living costs and mounting government debt.

Despite these headwinds, solid earnings reports from companies like ASML, Shell, and Airbus bolstered confidence in European corporations and lifted overall investor sentiment. BP rose 1.1 percent after delivering third-quarter net income above forecasts, while German sportswear maker Puma surged 4 percent following a strong quarterly earnings report.

Notable gains included Bayer, which jumped 4.1 percent following a trial victory over claims that its Roundup weedkiller caused cancer, and Puma, which increased 4 percent after reporting impressive quarterly earnings. Investors were also eagerly awaiting third-quarter euro zone GDP figures later in the day.