European equities gave back ground Friday, with Reuters linking a technology-sector slump to investor concerns about AI infrastructure costs as the STOXX Europe 600 closed 0.36% lower.
STOXX, the index administrator, said the benchmark finished at 646.75, down 2.36 points. Reuters reported that October was its strongest month since June. The news service also put the European technology sector index down 2.75%, its steepest daily drop since July 7.
Amazon put its free cash flow at negative $42.4 billion over the 12 months through Sept. 30. In its results, the company said AI investment accounted for most of a $94.8 billion increase in purchases of property and equipment from a year earlier. It expects cash capital spending to reach about $220 billion in 2026. Intel reported third-quarter revenue of $16.5 billion, 21% higher than a year earlier.
Daniela Hathorn, senior market analyst at Capital.com, told Reuters: “The message from investors is becoming clearer: strong AI demand is no longer enough on its own.”
Eurostat’s preliminary estimate put euro-area GDP growth at 0.4% quarter over quarter in the third quarter, down from 0.6% in the second quarter. Output was 1.3% higher than a year earlier. Eurostat said the estimate relies on incomplete data and may be revised. French GDP fell 0.1% quarter over quarter in the third quarter.
France’s National Institute of Statistics and Economic Studies (Insee) estimated consumer prices rose 3.4% in October from a year earlier, up from 3.1% in September. The Harmonised Index of Consumer Prices (HICP) was 3.8%, compared with 3.4% in September; the October readings are provisional.
Company results also showed growth. Universal Music Group reported third-quarter revenue of €3.394 billion, up 12.3% year over year. Sanofi reported sales of €14.444 billion, up 14.3% at constant exchange rates, and raised its 2026 growth outlook.
Eurostat’s flash estimate of euro-area inflation for October is due Nov. 4. Eurostat’s next third-quarter GDP estimate and Insee’s final October inflation results are scheduled for Nov. 13.
