European markets were on track to close the week lower on Friday as tech-related weakness and broader macroeconomic uncertainty weighed on sentiment. The STOXX 600 index slipped 0.3% to 565.90 points by 09:42 GMT, poised for its biggest two-week drop since early September.
Analysts cited a mix of factors behind the sell-off, including stretched valuations in technology stocks, a prolonged U.S. government shutdown, and hawkish remarks from Federal Reserve officials that dampened risk appetite. The combination has created an uneasy environment for European investors heading into year-end.
“Investors will be more selective about which AI names have solid cash reserves versus those relying on debt-driven expansion,” said Lale Akoner, Global Market Strategist at eToro. “Europe needs stronger earnings momentum to sustain valuations, though fiscal support remains a positive factor.”
While some investors attempted to “buy the dip,” concerns over global growth and tighter liquidity limited enthusiasm. Technology shares were among the hardest hit, with industrial tech names Legrand, Schneider Electric, and Siemens Energy posting steep losses.
ITV Jumps 15% on $2.15 Billion Sky Deal Talks
In contrast to the broader market slide, ITV (L:ITV) surged 15.3% after confirming talks with Sky, owned by Comcast (O:CMCSA), over a potential £1.6 billion ($2.15 billion) sale of its broadcasting and entertainment unit, including debt.
The news sparked optimism across the European media sector, as investors speculated that consolidation could help traditional broadcasters compete against U.S. streaming giants. ITV’s move also stood out as one of the top gainers on the STOXX 600.
Elsewhere, auto stocks rebounded following reports that chip supplier Nexperia might resume exports from China, easing supply chain fears that have plagued the industry for months.
Key stock moves:
- ITV: +15.3% on Sky deal talks
- Rightmove: –18% after cutting 2026 profit outlook
- IAG: –8.6% following weaker earnings
- Monte dei Paschi di Siena: +4.4% on surprise Q3 profit rise
Earnings and Drug Price Cuts Weigh on Market
Earnings season continued to shape trading patterns as investors evaluated Europe’s corporate health. Rightmove, Britain’s top property portal, slumped 18% after forecasting slower profit growth due to heavy investment in artificial intelligence.
Meanwhile, Novo Nordisk dropped 1.7% after it and Eli Lilly agreed to cut prices for their GLP-1 weight-loss drugs under U.S. Medicare and Medicaid programs — a move expected to trim margins but expand accessibility.
Despite scattered strength in banking and energy shares, sentiment remained cautious. With tech weakness, muted earnings, and policy uncertainty still clouding the outlook, the STOXX 600 is heading into next week on fragile footing.