European Markets Decline, Zalando Probe

European shares retreated from record highs on Friday, largely due to a global sell-off in technology stocks. The pan-European STOXX Europe 600 index closed 0.7% lower but still managed narrow weekly gains. Zalando's shares plunged by 6.3% after Germany's financial regulator, Germany — Federal Financial Supervisory Authority, launched an investigation into the online fashion retailer's 2025 financial statements, citing breaches of accounting regulations. This probe also affected the broader retail sector. Uncertainty in the global technology sector, fueled by surging memory chip costs due to AI-driven demand, led to declines in chipmakers like Infineon Technologies and STMicroelectronics, and semiconductor equipment makers such as BE Semiconductor and ASML. Telecom companies Ericsson and Nokia also saw their shares fall. In contrast, Volkswagen's shares rose on reports of potential job cuts, and Wise's shares climbed after reporting strong customer growth and announcing a $500 million share buyback plan. The market also noted rising U.S. inflation and expectations for interest rate hikes from the United States — Federal Reserve and the European Union — European Central Bank.