European shares log a weekly decline, defence stocks slide

European shares slid on Friday and registered a weekly decline as concerns over stretched tech valuations came to the fore again, while defence stocks weakened amid signs of possible progress toward ending Russia’s war in Ukraine.

The pan-European STOXX 600  fell 0.3% to 562.1 points, after hitting its lowest since late September earlier in the session. The index logged its biggest weekly drop since late July.

Germany's DAX  down 0.8%, hit a six-month low earlier. Spain's IBEX  lost 1%.

In the U.S., tech stocks steadied in choppy trade after dragging markets a day earlier, while sentiment improved as traders boosted bets on an interest rate cut by the Federal Reserve next month following remarks from policymakers.

European tech stocks  dropped 2.3% to hit their lowest since mid-September. ASML , ASM International  and BE Semiconductor lost between 4.6% and 6.3%.

Axel Rudolph, senior technical analyst at IG Group, said "the whole day European markets have just been underwater," attributing that to the drag by tech stocks as worries over sky-high valuations in the U.S. persisted. U.S. trading was extremely volatile on the day.