European stocks head for mixed open after latest AI Wall Street sell-off

• AI jitters hit U.S. markets hard on Thursday, with real estate, trucking, and software stocks seeing significant declines and all Magnificent 7 tech stocks closing negative
• U.S. inflation data scheduled for release at 8:30 a.m. ET Friday is a key focus for global investors
• Metal markets declined after reports that President Trump plans to scale back steel and aluminum tariffs, with aluminum futures down 1.2% in London and 0.6% in the U.S.

Summary: European Stocks Face Mixed Open Amid AI Concerns and Tariff News

Market Overview:

European stock futures showed mixed signals ahead of Friday's open, with the pan-European Stoxx 50 down 0.1% and French CAC 40 down 0.2% as of 7 a.m. London time (2 a.m. ET). German DAX futures declined marginally, while London's FTSE 100 futures gained 0.1%.

Wall Street Weakness:

U.S. markets experienced broad declines Thursday as renewed AI concerns pressured equities. The sell-off particularly impacted real estate, trucking, and software sectors, with all "Magnificent 7" tech stocks closing in negative territory.

Corporate Earnings:

Friday represents a quieter day for European earnings, with French aerospace company Safran and British lender NatWest scheduled to report results following a busy earnings week.

Key Market Drivers:

Investors await critical U.S. inflation data from the Bureau of Labor Statistics, due at 8:30 a.m. ET, which could influence market direction and Federal Reserve policy expectations.

Metals Market Reaction:

Metal markets showed subdued trading after Financial Times reports indicated President Donald Trump plans to scale back steel and aluminum tariffs. Aluminum futures dropped 1.2% in London and 0.6% in the U.S., while front-month steel futures declined 0.1%.

Geopolitical Context:

International officials are convening in Munich, Germany, for the Munich Security Conference, running through Sunday.

Market Implications:

The mixed European open reflects cautious sentiment driven by ongoing AI sector volatility, anticipated inflation data, and evolving trade policy. The potential tariff rollback could provide relief to metals producers while affecting related industries.