European stocks notch monthly gain on earnings optimism

European shares ​closed lower on Friday, but posted monthly gains as strong corporate earnings buoyed markets helping them ‌weather a month of Middle East hostilities and artificial intelligence-related jitters.

The pan-European STOXX 600 index inched down 0.1% at 649.19 points. The index hit its highest level on record earlier in the session but gave back those gains.

On Friday, Universal Music Group  slumped 25.4%, ​marking its biggest one-day loss on record, after its first-half results. The STOXX 600 media index lost 5.5%.

Technology stocks  ​rose 0.3%, but pared some gains from earlier in the session. This week, quarterly earnings ⁠from U.S. Big Tech painted a mixed picture as Microsoft surged after signs its AI investments were paying off, ​while Meta was punished as its free cash flow saw a drop due to its spending plans.

Concerns that hefty spending on ​AI buildouts and their returns not materializing at the pace markets expected have raised scrutiny of valuations in the sector, leaving it vulnerable to wild swings.