European Shares Fall 0.36% as Global AI Spending Fears Hit Chip Stocks, Ending Best Month Since June

European shares closed lower Friday, dragged down by a global technology selloff over concerns about the cost of building AI infrastructure. The pan-European STOXX 600 fell 0.36% to 646.75 points, though it still posted its best month since June. The European technology sector index dropped 2.75%, its worst day since July 7, leading sectoral declines. AT&S, Soitec and Technoprobe led STOXX 600 losses, falling between 9% and 13%. The pullback followed Amazon and Intel results that revived worries about AI capital spending. "Strong AI demand is no longer enough on its own," said Daniela Hathorn of Capital.com. Separately, euro zone data showed the economy grew faster than forecast last quarter, while French consumer prices rose more than expected in October to their highest rate since December 2023. Universal Music Group jumped 7.89% on streaming revenue growth, Sanofi gained 4.71% on an outlook raise, Puma rose 5.59% on a sales beat, and Bayer gained 5.46% after winning a Roundup trial.