European stocks slip 1% as insurance selloff hits AI investment confidence
European stocks fell 1% on Friday, with insurance shares leading a selloff as investors grew concerned about AI investment stability following a Democratic victory in the US Congress. The pan-European STOXX 600 index closed at 648.33 points. The insurance sector dropped 2.6% after JPMorgan downgraded German reinsurers, with Hannover Re, Munich Re, and Swiss Re falling between 4.3% and 4.6%. Tech stocks edged 0.2% lower on fears Democrats could curb AI data-centre spending, while Teleperformance slumped 15.3% after cutting its revenue outlook. Clean energy stocks rose on expectations of renewed green support, with Orsted and Nordex gaining, while travel stocks added 0.9% on hopes Republican losses could ease Middle East tensions and lower oil prices. The STOXX 600 still posted a small weekly gain.