European Stocks Tumble On AI Regulation Fears

(RTTNews) - European stocks tumbled on Friday as risk appetite fell amid rising fears of tighter AI regulations by the Trump administration. Investors also reacted to corporate earnings announcements and the latest batch of regional and U.S. economic data.

Uncertainty about the potential economic impact of the Democrats' sweeping win in the US midterm elections contributed to the reduced risk appetite in global markets.

It is feared that Democratic Party's sweeping wins in the US midterm elections could result in tighter regulation of the AI industry and slowdown in data center expansion.

The pan European Stoxx 600 ended down 1.84%. The UK's FTSE 100, Germany's DAX and France's CAC 40 settled lower by 2.21%, 2.33% and 1.83%, respectively. Switzerland's SMI closed 1.14% down.

Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Greece, Ireland, Italy, Netherlands, Norway, Poland, Spain and Sweden closed weak.

Iceland and Türkiye ended higher, while Portugal and Russia closed flat.

In the UK market, BT Group tumbled 6%. Metlen Energy & Metals dropped nearly 5%, while Airtel Africa, The Sage Group, Hiscox, Admiral Group, Next, British American Tobacco, Imperial Brands, Associated British Foods, National Grid, Marks & Spencer, Ithaca Energy, Unilever and Experian lost 2%-4%.

Coca-Cola HBC climbed more than 3%. Scottish Mortgage gained 2.2%, while Endeavour Mining, IAG, Rolls Royce Holdings and Intercontinental Hotels moved up 1%-1.7%.

In the German market, Deutsche Post, Hannover RE, Munich RE, Siemens, Rheinmetall, BMW, Allianz, BASF, Deutsche Bank, Brenntag, Mercedes-Benz and Zalando ended down 3%-5%.

Daimler Truck Holding drifted lower by 3.7% despite a 73% jump in Q3 adjusted operating profit and reaffirmed full-year guidance, as nine-month results remained below year-ago levels.

Adidas, SAP, Volkswagen, Deutsche Boerse, Bayer, Symrise, Commerzbank, E.ON, Beiersdorf, Hochtief and Deutsche Telekom also ended notably lower.

Siemens Energy climbed 4%. RWE and Fresenius posted moderate gains.

In the French market, Teleperformance tanked 15% after the company cut its 2026 revenue outlook.

Capgemini, LVMH, Hermes International, Kering, Danone, AXA and Bouygues closed lower by 2%-3%.

Publicis Groupe, Edenred, Orange, Dassault Systemes, L'Oreal, TotalEnergies, Vinci, Pernod Ricard and Sanofi also ended weak.

STMicroelectronics, Legrand, EssilorLuxottica and Stellantis gained 1%-1.7%.

In economic news, UK house prices declined for the third straight month in October, marking their quickest in three years. House prices dropped 1.2% on an annual basis in October, faster than the 0.1% slight decrease in September. Weaker housing demand was due to renewed inflationary pressures, driven in part by the conflict in the Middle East. On a monthly basis, house prices dropped 0.6%.

France's trade deficit widened to €7.3 billion in September from a revised €6.0 billion in August, well above expectations of €5.8 billion. Imports rose 4.0% month-on-month to €62.7 billion, while exports rose at a softer 2.0% to €55.3 billion.

Germany's industrial production expanded for the second straight month in September amid significant output growth in the automotive industry, official data showed.

Industrial output expanded 0.7% on a monthly basis, slower than the revised 1% rebound in August, Destatis said. Meanwhile, economists had expected a flat change.

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