(Bloomberg) — European stocks were steady Friday as corporate earnings remained center stage, while a selloff eased in sectors that are deemed at risk of disruption from artificial intelligence.
The Stoxx Europe 600 Index was little changed as of 8:15 a.m. in London, and was tracking its third straight weekly advance. Technology and insurance stocks were among the biggest gainers, while consumer products were the worst laggards.
L’Oreal SA slumped 6.3% after its sales missed estimates in the final months of last year as the French beauty group’s luxury division disappointed. On the other hand, Capgemini SE rose as much as 4.8% as Chief Executive Officer Aiman Ezzat said the French IT company was “clearly pivoting” to facilitate AI adoption, which will fuel sales this year.
Transportation and logistics stocks including DSV A/S and Kuehne Nagel International AG posted gains, a day after sliding as the sector became the latest casualty of the AI-disruption “scare trade.”
While the AI-related jitters have roiled a range of sectors including software and wealth managers, the churn hasn’t derailed the overall rally at the index level. The Stoxx 600 index hit a record earlier this week, supported by improving market breadth.
“The uncertainty will remain high in the near term but we believe that equities will rebound from here with solid earnings, policy support and stronger buyback activity going forward,” said Ulrich Urbahn, head of multi-asset strategy and research at Berenberg.
Elsewhere in individual stocks, Safran SA rallied 7% after the French aerospace company upgraded its 2028 earnings targets. Shares in London-based gambling company Flutter Entertainment Plc sank 7.8% after DraftKings, a subsidiary of Flutter Entertainment in the US, issued a disappointing outlook on Thursday.
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–With assistance from Michael Msika and Sagarika Jaisinghani.
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