European equities edged higher on Friday, buoyed by overnight strength from Wall Street and a flurry of upbeat earnings reports on both sides of the Atlantic.
By 07:05 GMT, Germany’s DAX advanced 0.5%, France’s CAC 40 gained 0.6%, and the UK’s FTSE 100 rose 0.2%. Markets responded positively to Thursday’s U.S. session, where the S&P 500 and Nasdaq Composite both closed at record highs, fueled by strong earnings from major U.S. corporations including Netflix, PepsiCo, and United Airlines.
Corporate Highlights in Focus
In Europe, earnings season gathered pace. British luxury fashion house Burberry (LSE:BRBY) posted a smaller-than-expected 1% decline in comparable retail sales for Q1, hinting at a potential stabilization after quarters of underperformance.
Saab (BIT:1SAAB) raised its full-year organic sales forecast after posting a 32% rise in second-quarter sales, signaling robust demand for its defense products.
Consumer goods group Reckitt Benckiser (LSE:RKT) confirmed the divestment of its Essential Home division to private equity firm Advent International in a deal worth up to $4.8 billion including debt, as it continues to streamline operations.
Meanwhile, Electrolux returned to profitability in Q2, reversing heavy losses from a year earlier, led by improved performance in North America.
Economic Indicators and Central Bank Outlook
On the macro front, German producer prices fell 1.3% in June year-on-year, matching forecasts and reinforcing signs of subdued inflation in Europe’s largest economy. This followed eurozone CPI data confirming annual inflation at 2.0%—right on the European Central Bank’s target.
With inflation cooling, the ECB may have more room to consider further easing, although geopolitical uncertainties—such as proposed 30% U.S. tariffs on EU imports—add complexity to the central bank’s upcoming rate decisions, with a policy announcement due July 23–24.
Oil Prices Rise on Supply Disruptions
Crude prices edged higher on Friday amid fresh supply concerns. Brent crude was up 0.6% to $69.92 per barrel, while WTI rose 0.6% to $67.96.
Drone strikes on oil facilities in Iraqi Kurdistan have taken out roughly half the region’s output over four days, contributing to tighter supply conditions. Additionally, strong summer travel demand has lifted global oil consumption to an average of 105.2 million barrels per day in early July, up 600,000 bpd from a year ago, according to JPMorgan.
Despite OPEC+’s decision to boost production more than expected, the International Energy Agency last week warned that underlying tightness in the oil market could persist.
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