The pan-European Stoxx 600 closed lower on Friday, after AI fears triggered another sell-off on Wall Street overnight.
The Stoxx 600 provisionally closed below the flatline, with major bourses in mixed territory.
French aerospace firm Safran led the Stoxx 600, surging about 8% on Friday after reporting a net income rise of 3.5% year-on-year to 3.17 billion euros ($3.8 billion) in 2025, as revenues rose 15% to 31.3 billion euros.
Elsewhere in corporate earnings news, NatWest Group shed more than 2% after the U.K. lender recorded fourth-quarter profit of £1.48 billion, outflanking analysts' estimates of £1.24 billion.
French multinational cosmetics and personal care staple L'Oreal was more than 4% lower, while German online food delivery name Delivery Hero was down 4%, following results updates by both companies.
Stocks tied to Europe's property sector were trading lower on Friday after AI jitters rippled through U.S. real estate names, as well as trucking and software stocks, during the previous session. Investor anxiety over AI's impact on stocks loomed over markets ahead of Friday trading Stateside.
Land Securities, the U.K.'s largest commercial property development and investment company, was down 1.6% while rival developer British Land fell 0.5%. Segro, which specializes in edge-of-town flexible business space, was 0.7% higher, reversing morning losses.
Dan Ives, global head of tech research at Wedbush Securities, acknowledged the AI-related headwinds facing certain sectors, particularly software, but told CNBC that talk of a "software Armageddon" was overblown.
U.S. inflation data, published by the Bureau of Labor Statistics, showed consumer prices rose 2.4% during January, which was a rate slower than expected.
Metal markets were subdued on Friday, after the Financial Times reported U.S. President Donald Trump had plans to scale back tariffs on steel and aluminum. Aluminum futures were 0.8% lower, while front-month steel futures were down 0.3%.
Elsewhere, international officials are gathering in Munich, Germany, for the Munich Security Conference, which runs through Sunday.