UPDATE 1-European shares fall on tech rout, Fed policy jitters; defence stocks slide

European shares slid on Friday and headed for weekly losses as concerns over stretched tech valuations and a more hawkish Federal Reserve kept investors risk-averse, while defence stocks weakened amid signs of possible progress toward ending Russia’s war in Ukraine.

European shares slid on Friday and headed for weekly losses as concerns over stretched tech valuations and a more hawkish Federal Reserve kept investors risk-averse, while defence stocks weakened amid signs of possible progress toward ending Russia's war in Ukraine. The pan-European STOXX 600 fell 0.9% to 558.93 by 0944 GMT, its lowest since early October, with Germany's DAX at a six-month low and France's CAC 40 at a one-month trough. Tech names dropped 2.6%, and AI beneficiaries Schneider Electric and Siemens Energy slid 2.6% and 9.3%, respectively.

NVDA upbeat

mixed "I prefer now that investors in the market are questioning things than a few months ago when it seemed like there were no worries, when there still were risks in the market. But hopefully we think it's going to be temporary," said Anthi Tsouvali, Multi Asset Strategist at UBS.

The STOXX is on track for weekly losses of nearly 3%, its biggest weekly drop since the unveiling of U.S. tariffs sent global markets into a tailspin between late March and early April. An index tracking investor nervousness spiked 3 points to 25.09 - its highest since mid-May. Meanwhile investors were also monitoring developments around a new U.S. drafted plan to end the Russian war in Ukraine that would involve downsizing Kyiv's military and major territorial concessions.

Europe's defence index has been on a decline since early October and on Friday it fell 3 .1% with

Renk down 9.3% and Rheinmetall off 6.1%. Among others, French water and waste management group Veolia

VIE.PA lost 1.2% after

agreeing to buy U.S.-based hazardous waste company Clean Earth from Enviri for $3 billion.

Bucking the trend, food and beverage stocks, that investors flock to in times of economic and market uncertainty, rose 1%. French video game group Ubisoft jumped 12% after reporting second-quarter net bookings that exceeded its guidance and and plans to reduce its debt pile. Shares had been suspended for a week after delaying its earnings release. German ticketing firm CTS Eventim rose 8% after quarterly results.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)