European Markets Edge Up Amid Tech Stock Valuation Concerns

European shares rose slightly on Friday, closing a week marked by concerns about tech stock valuations. The STOXX 600 index gained 0.2%, despite a looming two-week loss. ITV shares soared on potential sale discussions with Sky, while Rightmove struggled due to slower projected profit growth.

European shares saw a modest increase on Friday, offering a steady conclusion to a week fraught with concerns over the high valuations of technology stocks worldwide. Meanwhile, ITV's market performance jumped significantly amid discussions of selling its broadcasting segment.

The STOXX 600 index saw a 0.2% rise to 569.02 points by 0810 GMT. Despite these gains, the index is poised to suffer its most substantial two-week drop since early September. The week's selloff, though not attributed to a singular cause, stems from a variety of pressures, such as tech stock valuations, a looming U.S. government shutdown, and assertive Federal Reserve messages.

ITV shares surged 18.2% following its announcement of talks with Comcast-owned pay-TV company Sky, potentially selling its media and entertainment unit for £1.6 billion, including debt. The STOXX media sector rose by 1% overall, but Rightmove saw a 24% decrease due to a projected slowdown in profit growth, attributed to its AI investment plans. Monte dei Paschi di Siena defied the trend, gaining 4.5% after posting unexpected third-quarter profit growth.

(With inputs from agencies.)