European stock markets were mostly weaker on Friday, with investors continuing to digest a heavy run of corporate results as a packed week—featuring major central bank decisions—neared its end. By mid-morning, Germany’s DAX was up 0.3%, while France’s CAC 40 slipped 0.3% and the UK’s FTSE 100 eased 0.2%.
Earnings remained the main focus across the region, with updates from several large-cap names shaping sentiment. Shares in Stellantis (BIT:STLAM) dropped sharply after the carmaker announced it expects to book around €22.2 billion in charges as it scales back its electric vehicle strategy in response to softer demand. The group said the bulk of the write-downs relate to revisions to its product roadmap, reflecting much lower assumptions for EV sales. Following the reset, Stellantis now anticipates a net loss of €19–21 billion in the second half of 2025 and confirmed that dividend payments will be suspended.
Elsewhere in the banking sector, Société Générale (EU:GLE) lifted its profitability target for the year after reporting a stronger-than-expected fourth-quarter performance, supported by higher revenues and tighter cost control. In Italy, utility group Enel (BIT:ENEL) said its 2025 ordinary net income came in slightly above the top end of guidance at €6.90 billion, ahead of a capital markets day scheduled for later this month.
Other notable movers included weight-loss drugmaker Novo Nordisk (NYSE:NVO), whose shares rose after the US Food and Drug Administration warned it could take action against “illegal copycat drugs.” In the mining sector, Rio Tinto (LSE:RIO) and Glencore (LSE:GLEN) confirmed late Thursday that they had ended discussions over a potential megamerger that would have created the world’s largest mining company.
On the macro front, fresh data underlined the uneven nature of Germany’s economic recovery. Exports jumped 4.0% month on month in December, well ahead of expectations for a 1% rise, but industrial production disappointed, falling 1.9% over the same period. In the UK, figures from mortgage lender Halifax showed house prices rose 0.7% in January and were 1.0% higher than a year earlier.
Central banks were also in focus, with both the European Central Bank and the Bank of England leaving interest rates unchanged on Thursday, in line with market expectations.
In commodities, oil prices edged higher on Friday but remained on track for their first weekly decline in almost two months. Brent crude rose 1.3% to $68.43 a barrel, while US West Texas Intermediate gained 1.4% to $64.20. Despite the rebound, Brent was heading for a weekly loss of 3.3% and WTI for a drop of 1.8%, as traders weighed the outcome of US-Iran talks scheduled for later in the day.
Markets have been hopeful that discussions between Washington and Tehran could help ease tensions in the Middle East and reduce the risk of wider conflict. That optimism has led investors to strip some geopolitical risk premium out of crude prices this week, despite Iran’s status as a major oil producer and its proximity to the strategically vital Strait of Hormuz.
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