Europe open: Shares tank as Nvidia rally evaporates

21st Nov 2025 08:06

(Sharecast News) - European shares continued their volatile week on Friday with markets slumping on persistent worries about AI valuations and a mixed outlook for the US jobs market, while a potential peace plan on the Ukraine war knocked defence stocks.

The pan-regional Stoxx 600 index was down 1% to 558 at 0821 GMT. Germany's DAX fell 1.27%, the UK's FTSE 100 declined by 0.73% and France's CAC 40 was off by 0.70%.

US markets closed lower after a dramatic turnaround in shares of artificial intelligence darling Nvidia as market participants gave up hope that the Federal Reserve would move to cut rates again in December.

Investors were also assessing long-delayed data showing US job growth accelerated in September, but the unemployment rate rose to 4.4% and the economy shed jobs in the previous month, suggesting labour market conditions remained sluggish.

"The premise for stocks on Thursday was strong: Nvidia's results were stunning, and the US unemployment rate rose, sparking hope that the Fed may consider a rate cut next month," said XTB research director Kathleen Brooks.

"However, there was a categorical reversal in sentiment, stocks plunged, intra-day volatility surged to its highest level since April, and Nvidia's share price shed 3%. Stocks are now on track to register their worst week since President Trump's tariff plan ripped through markets back in April."

Meanwhile the US and Russia appeared to have drawn up a deal to end the war in Ukraine that reportedly would force Ukrainian President Volodymyr Zelenskyy to cede the entire Donbas region and reduce the size of its military forces.

The news saw shares in Renk, Rheinmetall, Hensoldt and Leonardo fall sharply.

German ticketing firm Eventim jumped on a positive earnings report on Thursday.

Reporting by Frank Prenesti for Sharecast.com