European equities were largely unchanged on Friday but remained on track for weekly declines as rising crude oil prices—driven by escalating tensions in the Middle East—continued to fuel inflation worries and dampen expectations for near-term interest rate cuts from the Federal Reserve.
In economic developments, new data showed the U.K. economy recorded no growth in January. According to the Office for National Statistics, an increase in construction activity was offset by weakness in industrial output and stagnation in the services sector.
Gross domestic product was unchanged during the month, following expansions of 0.1% in December and 0.2% in November. Economists had expected the economy to grow 0.2% month-on-month.
On an annual basis, the U.K. economy expanded 0.8% in January, slightly below the 0.9% growth forecast by analysts.
Elsewhere in Europe, France’s annual inflation rate accelerated to 0.9% in February, up from 0.3% in January.
In market trading, France’s CAC 40 was hovering just below flat levels, while Germany’s DAX was up 0.1% and the U.K.’s FTSE 100 gained 0.2%.
Shares of Vivendi (EU:VIV) declined even after the French media group reported a return to profitability in the second half of 2025.
Radiator maker Stelrad Group (LSE:SRAD) also fell after reporting lower revenue for 2025 amid weak demand across the U.K., Ireland and continental Europe.
Meanwhile, BE Semiconductor (EU:BESI) rose sharply following reports that the chip-equipment manufacturer has attracted takeover interest.
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