European shares fall as global AI rout gathers pace

European equities began Friday in retreat as anxiety over artificial-intelligence investment spread across global markets. Business Recorder reported that the STOXX 600 was down 1.6% at 644.72 points by 0810 GMT, while major regional benchmarks also fell by more than 1%. The drop erased the pan-European index’s weekly advance, leaving it about 0.2% lower for the week.

Media, healthcare and retail shares each declined by more than 2%, while technology names including Siltronic and ASMI also lost ground. Investors were concerned that a Democrat-led US Congress could restrict AI data-centre expenditure, adding to doubts about returns, high valuations and borrowing-backed investment. Teleperformance fell 18% after lowering its full-year revenue growth outlook, as weakness in its trust and safety business outweighed expansion in AI-supported and back-office services.