Europe midday: Shares slide on mixed EU trade data, AI bubble fears

(Sharecast News) - European shares slid into negative territory at midday on Friday after another sell-off on Wall Street overnight driven by renewed jitters around an artificial intelligence bubble and mixed trade data from the EU.

The pan-regional Stoxx 600 index was down 0.4% to 616 at 1214 GMT. Germany's DAX and the UK's FTSE 100 hovered around the flatline.

Official data showed the European Union's trade surplus fell again, according to flash estimates published on Friday, as US tariffs continued to hit exports and imports, particularly from China, weighed on local manufacturers.

The bloc's surplus fell to �12.9bn in December from �13.9bn a year earlier as chemical, machinery and vehicle sales declined, said the EU's statistical office.

In the eurozone the surplus fell to �12.6bn from �13.9bn in December 2024. Exports from the single currency region to the rest of the world were �234bn, a year on year increase of 3.4%.

EU exports to the US were down 12.6% from a year earlier, reducing the surplus to �9.3bn, while the deficit with China rose to �26.8bn from �24.5bn.

In separate announcements, the eurozone economy grew by 0.3% in the fourth quarter while employment rose by 0.2% in the same period, unchanged from the previous three months.

US stocks closed lower on Thursday after data released shortly after the open revealed that monthly US home sales dropped at their sharpest rate in nearly four years.

Existing home sales fell 8.4% to an annualised rate of 3.91m in January, well below the 4.18m expected by analysts, hitting the lowest level since September 2024.

"The AI scare trade continues to dominate markets, and as new AI tools are introduced, the ripple effects are widening," said XTB research director Kathleen Brooks.

"For example, silver and gold prices plunged on Thursday, as precious metals continue to move with stocks and broader risk sentiment. Gold and silver are both staging a recovery this morning, however they have not recouped the losses."

Investors are also eyeing US inflation data, due later in the day, and a Financial Times report stating President Donald Trump plans to scale back tariffs on steel and aluminum.

In equity news, L'Oreal shares fell as the cosmetics company's fourth-quarter sales missed forecasts.

Safran jumped as the French aerospace group forecast increased revenue and earnings guidance for 2026, after a rise in profits last year driven by strong aftermarket demand for its civil jet engines.

Norwegian aluminium and renewable energy company Norsk Hydro fell after reporting a smaller-than-expected decline in fourth-quarter profits on Friday, but a disappointing outlook for the extrusions arm pushed shares lower.

Reporting by Frank Prenesti for Sharecast.com