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European shares fall as global AI rout gathers pace

By Thomson Reuters Nov 6, 2026 | 1:21 AM

Nov 6 (Reuters) – European shares opened lower on Friday, with losses across the board as a global market rout gathered steam, ​capping a painful week as investors ‌grappled with uncertainty over AI stocks after Democrats took control of the US Congress.

The pan-European STOXX 600 index dropped 1.6% to 644.72 points by 0810 GMT, with ‌benchmarks ​in most major regional markets also ⁠lower by more than ⁠1% each. Friday’s losses wiped out its gains for the week, and it is down about 0.2%.

The STOXX 600 index was relatively ​less impacted this week than its Asian and Wall Street peers, given the European index’s ⁠smaller exposure to AI stocks.

Media, ⁠healthcare and retail led broad-based declines, ​falling over 2% each.

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 slowdown in AI spending could weigh on the global economy that has been propped ⁠up by Big Tech investments.

Tech stocks such as Siltronic lost 2% and ASMI lost 1.3%, while AI ⁠equipment makers ‌such as Schneider Electric and Siemens ⁠Energy were marginally lower.

On the earnings ​front, ‌Teleperformance  tanked 18% after cutting its full-year ​revenue growth ⁠outlook after weakness in the outsourcing firm’s trust and safety business more than offset growth in its AI-powered and back-office services.

(Reporting by Johann M Cherian in Bengaluru; Editing by Saumyadeb Chakrabarty and ​Harikrishnan Nair)