European markets traded modestly higher on Friday as investors assessed a fresh batch of corporate results and economic indicators, while keeping a close watch on geopolitical tensions between Washington and Tehran.
At 08:05 GMT, Germany’s DAX advanced 0.2%, France’s CAC 40 gained 0.5% and London’s FTSE 100 rose 0.4%.
Earnings Season Wraps Up
The busy quarterly reporting calendar is drawing to a close, but several notable updates continued to shape sentiment.
Anglo American plc (LSE:AAL) reported a $3.7 billion loss after booking another sizeable impairment related to its diamond operations. The miner is continuing efforts to dispose of non-core assets while progressing its planned merger with Teck Resources.
Danone (EU:BN) said it is entering 2026 with confidence after delivering 2025 sales and cash generation above expectations. Demand for infant nutrition in China supported growth, while cost-control measures helped lift margins.
Swiss chemicals group Sika AG (TG:SIKA) posted a 16% drop in annual net profit, reflecting weaker construction demand in China and a downturn in U.S. commercial building activity following an extended government shutdown.
Aston Martin Lagonda Global Holdings plc (LSE:AML) reported lower full-year wholesale volumes and confirmed it will sell the naming rights of its Formula One team to an affiliate for £50 million in cash.
Pharmaceutical major AstraZeneca (LSE:AZN) announced that the U.S. Food and Drug Administration has approved Calquence as the first fully oral, fixed-duration therapy for adult patients with chronic lymphocytic leukaemia and small lymphocytic lymphoma.
UK Retail Sales Jump
On the macro front, UK retail activity surprised on the upside in January, pointing to resilient consumer demand at the start of the year.
Retail sales increased 1.8% month on month, accelerating from December’s 0.4% rise, according to the Office for National Statistics. On an annual basis, sales grew 4.5%, compared with a revised 1.9% increase in the prior month, previously reported as 2.5%.
Elsewhere, German producer prices declined 3% year on year in January, a steeper drop than the 2.1% fall expected by economists.
Investors are also awaiting eurozone PMI readings later in the session. In the United States, attention will turn to the core PCE price index — the Federal Reserve’s preferred inflation gauge — due for release later in the day.
Recent U.S. data showed headline consumer price inflation rose more slowly than expected in January, reinforcing expectations that the Fed could begin cutting interest rates as early as June.
Oil Set for Weekly Gain
Crude prices steadied on Friday and remained on track for their first weekly advance in three weeks, amid renewed concerns over Middle East supply risks.
Brent crude traded broadly unchanged at $71.66 per barrel, while U.S. West Texas Intermediate slipped 0.1% to $66.35. Both benchmarks hovered near their highest levels since early August and were poised to gain more than 6% for the week.
Tensions escalated after U.S. President Donald Trump warned on Thursday that “really bad things” would happen if Iran fails to reach an agreement on its nuclear program within 10 to 15 days, raising the possibility of military action.
Any escalation involving Iran — a key OPEC producer — could disrupt shipments through the Strait of Hormuz, a vital passageway for roughly 20% of global oil flows.
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