Europe close: Tech sell-off, bank earnings drag markets lower

30th Oct 2026 15:45

(Sharecast News) - European stock markets finished firmly in the red on Friday as a sell-off across the global tech sector intensified following a rough start on Wall Street, while investors digested a barrage of blue chip corporate earnings closer to home.

The pan-European Stoxx 600 index finished 0.4% lower at 646.75, pulling back after hitting a seven-week high the previous session.

"Given the importance of tech stocks to global markets, it is not surprising to see stock markets around the world ending the week with heavy losses," said Chris Beauchamp, chief market analyst at IG.

"This week's tech earnings might have restored the market's faith in the AI story, but instead they have dealt it a further blow."

Most major regional indices finished lower - Frankfurt, Milan and Madrid all dropped 1% or more - following mostly negative reactions to bank earnings, though London's FTSE 100 was flat as the benchmark was supported by gains from AstraZeneca, BT and BP.

Nevertheless, global market sentiment was weakened by continued worries about the future sustainability of AI investments, with chip and AI stocks across Europe, Asia and the US falling sharply.

The Nasdaq tumbled 2.7% in morning trade in New York, while the KOSPI in Seoul finished the day 3.5% lower, after Google parent Alphabet underwhelmed with profits and negative free cash flow, heightening concerns about the impact of its AI infrastructure spending on investment returns.

Another jump in the price of oil also dampened risk appetite, with front-month Brent crude futures up 2.5% at $113.54 a barrel following another attack on a tanker in the Strait of Hormuz.

Meanwhile, investors were still reacting to Thursday's decision by the ECB to leave the deposit rate on hold at 2.5%, as expected, though it signalled a 25-basis-point hike was likely in December. The decision came just hours after the ECB said that president Christine Lagarde plans to step down in February, before the end of her term next October.

Bank earnings take centre stage

Banks were in focus following the latest string of quarterly results. Crédit Agricole fell after underwhelming with a 7.5% increase in third-quarter revenues, as the French lender highlighted strong performances in asset management and corporate and investment banking.

In Madrid, CaixaBank was subdued after reporting a 12.9% increase in net profit to €4.96bn for the first nine months of 2026, supported by increased lending and customer deposits.

Austria's Erste Group inched higher after raising its full-year outlook following a 20.6% increase in nine-month net profit, helped by the consolidation of its Polish banking operations.

UK lender NatWest sank after attributable profit fell 4.4% in the third quarter to £1.5bn, while return on tangible equity slipped to 21.6% from 22.3%.

However, that was offset by big gains from London-listed AstraZeneca after posting a 7% jump in total revenue for the first nine months of the year, with double-digit growth in oncology, R&I and rare disease offsetting headwinds from loss of exclusivity for Farxiga and Brilinta.

Also in London, BP was higher after reporting a surge in third-quarter profit and a reduction in net debt amid rising refining margins, while BT Group rallied following a report that Virgin Media O2 is closing in on a deal to use its rival's broadband network.

Meanwhile, chipmakers were in the red, tracking the global semiconductor sector lower, including ASM International, Infineon and ASML.

In macro news, the eurozone economy grew at its fastest annual pace in more than a year during the third quarter, according to preliminary figures released by Eurostat on Friday.

Gross domestic product increased by 1.3% year-on-year in the three months to September, accelerating from 1.2% in the second quarter and exceeding consensus forecasts of 1.1%. The reading marked the strongest annual expansion since the second quarter of 2025.