European shares fell sharply on Friday and were headed for their steepest weekly decline since late March. Concerns over stretched valuations in global tech stocks and renewed caution around U.S. monetary policy weighed heavily on sentiment.
The pan-European STOXX 600 dropped 1% to 558.19 points by 08:15 GMT, its lowest level since early October.
Major indexes across the region retreated. Germany’s benchmark index slid 1.2% to its weakest level since early May, while France’s CAC 40 lost 0.7%, hitting a one-month low.
Technology shares—already at the centre of recent market volatility—fell another 2%. Companies tied to the AI boom also declined, with Schneider Electric down 2% and Siemens Energy tumbling 7%.
Thursday’s brief global rally, sparked by Nvidia’s upbeat outlook, faded quickly. Investors again questioned whether AI valuations have become excessive. A mixed U.S. jobs report added to uncertainty over the Federal Reserve’s December rate decision.
The STOXX 600 is now on course for a nearly 3% weekly decline, its worst performance since U.S. tariff announcements shook global markets earlier this year.
Among individual movers, Veolia slipped 1% after agreeing to acquire U.S. hazardous-waste firm Clean Earth from Enviri for $3 billion.
