European shares ease as AI-driven tech selloff deepens

Oct 30 (Reuters) - European ‌shares inched ​lower ​on Friday as technology stocks came under pressure from renewed concerns over AI ‌investment returns, although the benchmark index remained on ⁠track for a monthly gain thanks to strong corporate ‌earnings.

The pan-European STOXX 600 ‌index fell 0.25% to 647.49 by 0809 GMT but was set to post both weekly and ​monthly gains.

Technology stocks led declines on Friday, with the sector index down 2%, after ⁠earnings from Amazon and Intel reignited investor concerns about the sustainability of ​heavy AI-related spending and the returns it can generate.

Political uncertainty in France also ​weighed on sentiment this month, ‌as the country faces mounting pressure from rising living costs and elevated government ⁠debt.

Still, robust earnings from the likes of ASML, Shell and Airbus reinforced confidence in the health of ⁠European corporates and lifted investor sentiment.

BP rose 1.1% after posting ​third-quarter net income ahead of expectations, while German sportswear maker Puma jumped 4% after quarterly earnings.

Among other movers, Bayer ‌gained 4.1% after winning a trial on Thursday over claims by three women ‌that its Roundup weedkiller caused their cancer.

Investors also ⁠awaited third-quarter euro ‌zone gross domestic ​product figures later in the day.

(Reporting by Avinash P in Bengaluru; Editing by Subhranshu ‌Sahu)

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