European Shares Slide As AI Spending Worries Mount

(RTTNews) - European shares fell sharply on Friday as the Democratic Party's sweeping wins at this week's midterm elections in the U.S. sparked fears of a slowdown in the pace of AI infrastructure development.

SoftBank Group's five-year credit default swap spread climbed to a four-year high, reflecting growing concerns over the profitability of artificial intelligence investments.

Investors also digested weak data that showed German industrial output expanded 0.7 percent on a monthly basis in September, slower than the revised 1.0 percent rebound in August.

On a yearly basis, industrial production rose 0.4 percent in September, slower than the 0.7 percent increase in the prior month.

The pan-European STOXX 600 fell 1.2 percent to 647.11 after dropping 0.4 percent on Thursday.

The German DAX tumbled 1.5 percent, France's CAC 40 shed 1.1 percent and the U.K.'s FTSE 100 was down 1.5 percent.

German wind turbine maker Nordex dropped 1.1 percent despite reporting strong performance for Q3 and confirming an increase to its full-year 2026 EBITDA margin guidance.

Krones, a packaging and bottling machine manufacturer, gained 1 percent after order intake rose 2.9 percent in the first three quarters.

Engine maker Deutz tumbled 4 percent after Q3 net income missed estimates.

Spanish travel tech firm Amadeus IT Group rose nearly 2 percent after Q3 earnings matched expectations.

British Airways owner IAG rose about 1 percent after reporting 5 percent growth in third-quarter revenue.

Teleperformance shares plummeted 16 percent in Paris after the outsourcing company cut its full-year revenue growth outlook.

Franco-Dutch airline group Air France-KLM surged nearly 4 percent after announcing the Court of Justice of the European Union has issued a favorable ruling, setting aside the General Court's February 2024 judgment.

Italian banking group Banco BPM fell 2.3 percent after announcing it is willing to consider a merger with Credit Agricole Italia.