European stocks experienced a downturn on Friday as concerns surrounding artificial intelligence (AI) spurred another sell-off in U.S. markets the previous night. The pan-European Stoxx 600 index dipped by 0.1% shortly after the opening, reflecting a broader trend of negativity across most sectors and major exchanges.
Among the UK markets, the FTSE 100 managed to outperform peers by trading 0.3% higher in the early session. In contrast, France’s CAC 40 and Italy’s FTSE Mib both registered declines of 0.3%. Germany’s DAX also mirrored this downward trend, falling by 0.1%.
In the U.S., Thursday saw significant losses across major indices, largely attributed to fears surrounding AI, which heavily impacted sectors including real estate, trucking, and software. The group’s highly watched “Magnificent 7” tech stocks all closed in the red.
Amid the turbulent market conditions, investors in Europe were left sifting through a week filled with corporate earnings reports. However, Friday’s earnings slate appeared less bustling, featuring key financial disclosures from French aerospace firm Safran and British lender NatWest. Attention is also focused on upcoming U.S. inflation data, set to be released by the Bureau of Labor Statistics at 8:30 a.m. ET, which is expected to provide further insights into economic conditions.
In the commodities sector, metal markets remained relatively quiet on Friday morning. Reports from the Financial Times indicated that U.S. President Donald Trump may be considering a reduction in tariffs on steel and aluminum. Reaction to this news saw aluminum futures plummet by 1.2% in London and 0.6% in the U.S., while front-month steel futures also fell by 0.1%.
Meanwhile, global officials convened in Munich, Germany, for the Munich Security Conference, which will continue through Sunday, focusing on pressing international security issues.
