European Stocks Reverse Gains on Friday

European stocks reversed early gains to close sharply down on Friday, with the STOXX 50 falling 0.8% and STOXX 600 down 0.6%.

Sentiment remained dented by persistent concerns over AI stock valuations and a flurry of corporate updates.

Rightmove slumped nearly 12% to the bottom of the STOXX 600 after warning that revenue growth will likely be flat in 2026.

IAG dropped 7.3% following a decline in net profit and stagnant revenue, while Novo Nordisk fell 2.3% after raising its bid for Metsera and announcing a deal with US President Trump to cut prices for certain obesity drugs.

On the upside, ITV surged almost 15% after confirming talks to sell its media business to Sky for £1.6 billion.

Automakers also gained, with Volkswagen up 2.2%, BMW 2.1%, and Mercedes-Benz 1.2%, following reports that China has lifted its export ban on Nexperia chips.

For the week, the STOXX 50 fell 1.7% and the STOXX 600 has dropped 1.2%.