European Markets Trade Mixed as AI Disruption Fears Weigh on Sentiment: DAX, CAC, FTSE100

European equities showed a mixed performance on Friday, with investors remaining cautious amid ongoing concerns about job losses and workplace disruption linked to the rapid adoption of artificial intelligence.

Block (NYSE:XYZ), the payments company led by Twitter co-founder and CEO Jack Dorsey, recently announced plans to cut roughly 40% of its workforce as automation driven by artificial intelligence reshapes operations.

On the macroeconomic front, U.K. consumer confidence unexpectedly weakened in February, falling to its lowest level in three months instead of posting the modest improvement economists had anticipated.

The U.K. consumer confidence index declined to -19 from -16 in January, according to the Consumer Confidence Barometer compiled by GfK and the Nuremberg Institute for Market Decisions (NIM). Economists had forecast a slight rise to -15, making the latest reading the weakest since November.

Sterling slipped to a more than two-month low against the euro amid political uncertainty following a Green Party victory in a special election in England.

The euro traded within a tight range against the U.S. dollar after reports indicated the European Central Bank reduced its exposure to dollar assets in early 2025.

Among major benchmarks, London’s FTSE 100 gained 0.3%, while Germany’s DAX fell 0.2% and France’s CAC 40 declined 0.6%.

At the stock level, French steel pipe manufacturer Vallourec (EU:VK) advanced after reporting fourth-quarter revenue that exceeded expectations.

Swiss reinsurer Swiss Re (TG:SR9) also posted strong gains after announcing a 47% increase in net profit for 2025.

In contrast, London-listed recruitment firm Hays (LSE:HAS) dropped sharply following a significant decline in first-half earnings.

Melrose (LSE:MRO), owner of GKN Aerospace, also fell after issuing a 2026 revenue outlook below market forecasts.

Belgian telecom group Proximus (EU:PROX) moved notably lower after announcing job reductions and dividend cuts following a 6.6% year-over-year revenue decline in the fourth quarter.

German online food delivery platform Delivery Hero (TG:DHER) also declined after reporting annual gross merchandise value (GMV) slightly below analyst expectations.