European equity markets traded cautiously on Friday as investors reviewed another round of corporate earnings while monitoring key inflation releases toward the close of a busy week.
At 08:10 GMT, Germany’s DAX was broadly unchanged, France’s CAC 40 edged down 0.1%, and the U.K.’s FTSE 100 gained 0.2%.
Earnings season remains in focus
Investors continued to analyse company results as Europe’s reporting season approached its final stages. More than half of companies in the STOXX 600 have now released fourth-quarter figures, with overall earnings slightly exceeding expectations — a trend that helped push the benchmark index to record highs on Thursday.
Swiss Re (TG:SR9) reported record annual net income of $4.76 billion, representing a 47% increase year over year. However, the reinsurer’s life and health division fell short of targets after booking a $650 million charge linked to assumption updates affecting underperforming portfolios in Australia, Israel, and South Korea.
BASF (TG:BAS) announced a 9.5% decline in full-year earnings, with its core chemicals division nearly breaking even during the fourth quarter. The German chemicals group relied heavily on reduced capital spending to support free cash flow generation.
Holcim (TG:HLBN) achieved a record recurring EBIT margin of 18.3% in 2025, an improvement of 80 basis points, following the spin-off of its North American operations and new acquisition agreements involving European walling manufacturer Xella and a majority stake in Peru’s Cementos Pacasmayo.
Melrose Industries (LSE:MRO) posted a 23% increase in adjusted operating profit for 2025 and returned to positive free cash flow for the first time in two years. Net debt rose, however, as the British aerospace and defence group distributed £255 million to shareholders through dividends and share buybacks.
Netflix steps back from Warner Bros bidding contest
In U.S. corporate developments, Netflix (NASDAQ:NFLX) said Thursday it would not increase its bid for Warner Bros Discovery (NASDAQ:WBD) after Warner Bros concluded that a revised offer from Paramount Skydance (NASDAQ:PSKY) qualified as a superior proposal under the terms of its merger agreement with the streaming company.
“We’ve always been disciplined, and at the price required to match Paramount Skydance’s latest offer, the deal is no longer financially attractive, so we are declining to match the Paramount Skydance bid,” Netflix co-CEOs Ted Sarandos and Greg Peters said in a statement.
Inflation data draws attention
On the macroeconomic front, France reported fourth-quarter GDP growth of 0.2%, matching expectations. Consumer prices in the country rose 0.7% in February after declining 0.3% the previous month.
Germany’s inflation figures are due later in the session, with European Central Bank policymakers expected to scrutinise the data closely ahead of their next monetary policy meeting scheduled for mid-next month.
Oil prices head toward weekly decline
Oil markets moved slightly higher on Friday but remained on track for weekly losses after the United States and Iran agreed to continue discussions over Tehran’s nuclear programme, easing fears of supply disruptions linked to escalating geopolitical tensions.
Brent crude futures rose 0.7% to $71.29 per barrel, while U.S. West Texas Intermediate futures gained 0.8% to $65.74 per barrel.
For the week, Brent prices were broadly flat, while WTI was set to decline by roughly 1%, partially reversing gains from the previous week.
Negotiations between Washington and Tehran concluded Thursday without a definitive agreement, but both sides plan to resume technical-level talks next week in Vienna, according to Omani Foreign Minister Sayyid Badr Albusaidi in a post on X following meetings in Geneva.
Tensions surrounding Iran have been a key influence on oil markets throughout February, as the United States deployed significant military assets to the Middle East and warned of potential action should Tehran reject a negotiated settlement.
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