Nov 6 (Reuters) – European shares were set to open lower on Friday amid a global market rout, capping a painful week as investors grappled with uncertainty over AI stocks after Democrats took control of US Congress.
Futures tied to the EURO STOXX 50 Index were down 1% at 6:52 GMT, with contracts tracking benchmarks in Germany and the UK down 0.8% and 0.9%, respectively.
Fears that a Democrat-led Congress could seek curbs on AI data-centre spending added to concerns over weak returns, lofty valuations and debt-fueled investment.
A selloff on Wall Street wiped out $2.5 trillion off the tech-heavy Nasdaq in the previous session, while losses piled on in Asia on Friday.
The STOXX 600 index was relatively less impacted, given its smaller exposure to AI stocks, and was up over 1.3% for the week, with a record high just over 1% away. The index was buoyed by sectors such as healthcare and banks and better-than-feared earnings broadly.
Tech stocks such as ASML, Infineon and AI equipment makers such as Schneider electric and Siemens Energy are likely to stay under pressure as investors rotate out of AI names that have seen some of the strongest gains this year in the region.
On the earnings front, Daimler Truck reported a 73% increase in its third-quarter operating profit and confirmed its full-year outlook, helped by a recovery in North American truck demand.
(Reporting by Johann M Cherian in Bengaluru; Editing by Saumyadeb Chakrabarty)
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