[AI Trading Shows Signs of Weakness; European Stocks Outperform US Stocks in October] European stocks edged lower on the last trading day of October, with the Stoxx Europe 600 index closing down 0.4%, narrowing its monthly gain to around 2%. European stocks have recently outperformed US stocks as AI trading showed signs of fatigue, driving fund rotation; they were relatively resilient again when global stocks suffered a sell-off on Friday. Disappointing earnings from Amazon and Intel reignited concerns about massive AI spending, causing a sharp drop in the Nasdaq 100 and a 3.5% decline in the South Korean Kospi index. A UBS basket of European AI beneficiaries fell 4.9%. Investors shifted to more defensive sectors in Europe in October, with sectors that performed strongly earlier this year, such as banking and basic resources, falling behind. The Stoxx Europe 600 is poised to outperform the S&P 500 in October, which was dragged down by its higher weighting in technology stocks.