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2026-10-31 01:34:29
[AI Trading Shows Signs of Weakness, European Stocks Outperform US Stocks in October] European stocks edged lower on the last trading day of October, but have outperformed US stocks recently as artificial intelligence trading showed signs of fatigue, driving fund rotation. The Stoxx Europe 600 index closed down 0.4%, narrowing its monthly gain to about 2%. Technology and mining stocks lagged behind, while healthcare and food and beverage stocks led the gains. European stocks were relatively resilient again on Friday as global stock markets were sold off. Disappointing earnings from Amazon and Intel reignited concerns about massive AI spending, causing the Nasdaq 100 to plunge. Asian stocks also declined, with South Korea's Kospi index, considered a bellwether for AI trading sentiment, falling 3.5% as investors reassessed the outlook for technology stocks. A UBS basket of European AI beneficiaries fell 4.9%. The Stoxx Europe 600 is poised to outperform the S&P 500 in October, which has been dragged down by its higher weighting in technology stocks. Throughout October, investors shifted toward more defensive sectors in the European market, while strong performers earlier this year, such as banks and basic resources, fell behind.
