LONDON — European markets fell on Friday, with earlier losses widening on concerns about an AI bubble.
pan-european Stocks 600 As of 2:32 p.m. (9:32 a.m. ET) in London, the stock was down 0.8%, with all major exchanges in the red.
british FTSE100 France was down 0.98% in afternoon trading. CAC The index fell 0.4%, with Germany’s dachshund It decreases by almost 1%. italian FTSE MIB It fell by 0.55%.
move rightShares tumbled on Friday, down as much as 28%, and were down 13% in recent trading after the company said it expected operating profits to decline due to heavy investments in AI. “The strategic shift raises important questions that the market has not yet answered,” UBS analysts said, adding that they were revising RightMove’s price target and rating.
On the other hand, British television companies ITV Shares soared about 16% after it was confirmed that the company was in talks with comcast over the potential sale of its television business in a deal worth 1.6 billion pounds ($2.1 billion).
Shares in Novo Nordisk, which cut its growth forecast earlier this week, fell 2.8% on Friday following an agreement with US President Donald Trump to lower the price of weight loss drugs.
European stock markets closed lower on Thursday. The biggest mover was drinks giant Diageo. Shares fell 6.5% after the London-listed company cut its full-year outlook, citing weakness in the Chinese and U.S. markets. The company’s stock rose again on Friday, rising more than 0.24%.
As earnings continue, some companies reporting Friday include: Richemont, International Consolidated Airlines Group SA, Daimler Truck Holding AG, Amadeus IT Group SA, Cellnex Telecom SA and OTP Bank NYRT.
Investors will also be looking at a range of data, including German import and export data and French trade statistics. In the UK, average house prices rose 0.6% in October, the biggest monthly increase since the start of the year, according to the Halifax House Price Index.
The announcement follows central bank decisions by the Bank of England and the Norwegian Central Bank to keep interest rates on hold.
BOE Governor Andrew Bailey has hinted to CNBC that a rate cut is imminent, and economists are currently pricing in a rate cut before Christmas.
“We’re past the peak limit, which is to be expected given that we’ve cut rates five times[since August 2024]. I still feel policy is restrictive, but we’re past the peak limit,” Bailey told CNBC’s Ritika Gupta.
Asian markets fell overnight, following Wall Street’s tech-led sell-off. Japan’s benchmark Nikkei 225 index has been rising recently, with AI-related stocks leading the decline, shedding 2.03%. SoftBank, which is scheduled to report next week, fell more than 8%.
In the United States, stock futures were in the red before the opening bell as the rally in tech stocks appeared to be losing momentum. The biggest decliners in the U.S. on Thursday were Nvidia, Microsoft, Palantir Technologies, Broadcom and Advanced Micro Devices, a sign that investors are cooling off on AI stocks. CNBC’s Jim Cramer said bubble fears and the length of the government shutdown were to blame.
Elsewhere, billionaire Elon Musk won approval from Tesla shareholders for a pay package of up to $1 trillion, backed by 75% of voting shares.
