Solid Gold Berjangka – European stock markets weakened during Friday’s trading session (October 30) as technology stocks came under pressure once again, driven by concerns regarding the massive investments being poured into the artificial intelligence (AI) sector. The STOXX 600 index fell 0.25% to 647.49, though it remains on track for gains on both a weekly and monthly basis.
The technology sector was the primary drag, declining by approximately 2%. Earnings reports from Amazon and Intel reignited investor skepticism about whether the heavy spending on AI would yield commensurate returns, prompting a sell-off in tech stocks.
Market sentiment was also clouded by political developments in France. Rising living costs and high levels of government debt have exerted additional pressure throughout the month, even as the solid financial performance of major European corporations has helped sustain investor optimism.
A number of robust earnings reports helped limit the market’s decline. Strong results from ASML, Shell, and Airbus bolstered confidence in the health of European companies. Shares of BP rose 1.1% after its third-quarter net profit exceeded expectations, while Puma surged 4% following the release of its quarterly financial results.
Investors are now awaiting the third-quarter gross domestic product (GDP) data for the eurozone, due for release on Friday. This data will serve as a key indicator of the region's economic strength and could potentially shape the direction of European markets heading into the weekend. (srh)