European Stocks Face Turbulent Week with Stellantis Decline and Tech Concerns

European shares declined on Friday, nearing a lackluster end to a volatile week amidst growing worries around software firms and poor corporate earnings. Stellantis led the declines, plunging 14.4%, while the broader auto sector fell 2.4%. Nonetheless, Societe Generale and Novo Nordisk registered notable gains.

European shares saw a downturn on Friday, poised to conclude a highly volatile week characterized by investor uncertainty surrounding software companies and lackluster corporate earnings. Leading the decline was Stellantis, which fell 14.4% following significant charges recorded in the second half of the previous year.

The pan-European STOXX 600 index fell by 0.2%, with the broader auto sector declining as much as 2.4%, weighed down by Stellantis' setback as they scale back electric vehicle development. Meanwhile, tech stocks experienced a 1% dip, marked by concerns over potential disruptions from emerging AI tools in the industry.

In contrast to the downturn, Societe Generale and Novo Nordisk provided some relief. The former climbed 6.3% after raising its key profitability target for 2026, while the latter gained 4.2% in the wake of the FDA's announcement to take action against 'illegal copycat drugs'.

(With inputs from agencies.)