European Shares Drop Amid Market Jitters and ITV-Sky Media Talks

European shares ended a volatile week lower, with the STOXX 600 index decreasing by 0.6%, as concern over the valuations of tech-related stocks persisted. Notably, ITV's shares jumped following reports of its talks with Sky over a sale of its media and entertainment unit.

The selloff in the market didn't have a single driving factor. Analysts cited diverse concerns, including high tech stock valuations, a looming U.S. government shutdown, and hawkish Federal Reserve commentary. Tech stocks took a significant hit, with companies like Schneider Electric and Siemens Energy among the most affected.

However, there were gains in the auto sector, buoyed by the resumption of chip shipments from China, leading to a rally in related stocks. Investors were also focused on earnings reports to assess the health of corporate Europe, with some positive outlooks stabilizing future estimates.