European shares decline amid AI spending concerns; Spain and Italy hit hardest

European stocks got off to a mostly weaker start, with a cautious mood continuing to ripple across international markets. A fresh decline in technology shares, after Amazon's earnings report, deepened anxiety around artificial intelligence outlays. The opening figures:

• Eurostoxx declined 0.8%
• Germany DAX shed 0.3%
• France CAC 40 remained flat
• UK FTSE added 0.3%
• Spain IBEX lost 1.0%
• Italy FTSE MIB dropped 1.2%

Shares in Italy and Spain suffered the most pronounced losses, with the Spanish market extending its poor run this week and once again threatening three-month troughs. Spain's difficulties stem largely from the aftermath of Brazil's election shock, especially affecting banking stocks and firms with major involvement in Brazil — including Santander, Telefonica, and Mapfre.

Looking at the wider market sentiment, the more concerning trend is that the technology selloff shows little indication of easing.

Alphabet disappointed investors earlier in the week, and Amazon has now joined that list. Its earnings fell short of forecasts, and significant AI expenditure commitments have revived worries about whether the huge sums invested in AI will ultimately yield the returns that investors anticipate.

The jitters are also visible in US futures, with the S&P 500 contract down 1.0% and the Nasdaq contract off 2.1% at present. That leaves European investors facing a quite uneasy backdrop as they head into the final trading day of October.

Some economic data is also due in Europe, with GDP and inflation figures scheduled. Those readings could add new dimensions to the outlook for ECB policy ahead of December.

The key question for broader markets is whether Wall Street can find steadiness later today. Amid AI spending anxieties weighing on markets before Halloween, it may take more than a handful of encouraging earnings reports to bring confidence back.