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Germany's DAX turned slightly negative to trade around 24,500 on Friday, as investors booked profits after recent peaks and defense stocks weakened following the Middle East peace deal backed by President Trump.

Defense stocks Hensoldt and Renk slipped toward the bottom of the index, shedding 4.2% and 2.6%, with Rheinmetall also down 2%.

The Hang Seng tumbled 462 points, or 1.7%, to close at 26,290 on Friday, extending losses for the fifth straight session and hitting a two-week low.

Tech shares led the slump, down over 3%, after China tightened rare earth export controls and stepped up enforcement of chip import restrictions to curb reliance on U.S. products such as Nvidia’s AI processors.

Consumer stocks also lost about 2.7%, as investors turned increasingly cautious ahead of key Chinese data for September next week, including trade, CPI/PPI, and credit figures.

Major laggards included Zhojin Mining (-7.4%), SMIC (-7.2%), China Hongqiao (-5.9%), Kuaishou Tech (-5.4%), and Tencent (-3.6%).

Still, losses were cushioned by Wall Street’s recent record highs and continued bets for a Fed rate cut in late October.

Meantime, sentiment toward mainland stocks stayed upbeat, with Chinese benchmarks hovering over decade highs after the Golden Week break.

For the week, the Hang Seng fell 3.1%, reversing gains from the prior week.

Milan’s FTSE MIB rose 0.4% toward 43,000 in early trading on Friday, trimming part of the 1.6% loss from the previous session as auto stocks rebounded after a recent slump.

Ferrari gained more than 1% after plunging over 15% the day before, when its revised full-year and 2030 guidance fell short of market expectations and included a cut to its EV sales targets.

Peer automaker Stellantis jumped over 2%, while most banking stocks also traded higher.

On the downside, defense firm Leonardo dropped around 2.6%, pressured by signs that a US-brokered peace deal is taking hold in the Middle East. On the data front, Italy’s industrial activity fell 2.7% year-on-year in August, marking the sharpest decline since last December and defying forecasts of a 0.5% gain.

The FTSE 100 traded lower on Friday, extending losses from its record high of 9,549 on October 8, as weakness in mining and energy stocks weighed on the index.

Precious metals miners led declines, with Endeavour Mining down 3.7% and Fresnillo losing over 3.5% as gold prices paused after recent gains.

Rio Tinto and Anglo American fell about 1%, while Glencore and Antofagasta eased 0.5% as copper prices pulled back.

Energy majors Shell (-0.6%) and BP (-0.3%) followed oil lower.

The index was also dragged by heavyweight overseas earners, including AstraZeneca (-0.8%) and HSBC (-0.5%), as the dollar weakened.

Despite Friday’s dip, the FTSE 100 remains slightly higher for the week, poised to notch its third consecutive weekly gain.

The Paris CAC 40 rose 0.2% to around 8,063 on Friday, recovering from mild losses in the previous session as investors remained cautious amid ongoing political uncertainty in France.

Market attention stayed focused on the evolving political landscape, with President Emmanuel Macron expected to appoint a new prime minister soon—his sixth leadership change since taking office.

Bank stocks outperformed, with BNP Paribas climbing 1.2%, Crédit Agricole adding 0.9%, and Société Générale advancing 0.5%.

In the industrial sector, Stellantis gained 1.8% after reporting a 13% year-on-year increase in global vehicle shipments in the third quarter.

Airbus edged up 0.1%, supported by projections for steady long-term growth in global aviation demand, expected to rise 10% in 2025 and reach $311 billion by 2044.

On the downside, ArcelorMittal led losses with a 2.6% drop, while TotalEnergies and Thales each slipped 0.5%.

Germany’s DAX rose 0.2% to around 24,670 on Friday, putting it on track for a new record high and marking a fourth straight session of gains.

All eyes remain on the international and geopolitical landscape, with the evolving crisis in France and the easing of tensions in the Middle East. Meanwhile, the US shutdown, now in its second week, is delaying the release of crucial economic data, including the September jobs report, which could influence the Federal Reserve's monetary policy.

On the corporate front, autos and banks were among the top performers.

Mercedes-Benz Group led the index, climbing more than 2.5%, while Porsche Automobil and Volkswagen rose over 1% each, rebounding from losses linked to Ferrari’s decline yesterday.