Category: Top Story

European equities showed a mixed performance on Friday, with investors remaining cautious amid ongoing concerns about job losses and workplace disruption linked to the rapid adoption of artificial intelligence.

Block (NYSE:XYZ), the payments company led by Twitter co-founder and CEO Jack Dorsey, recently announced plans to cut roughly 40% of its workforce as automation driven by artificial intelligence reshapes operations.

On the macroeconomic front, U.K. consumer confidence unexpectedly weakened in February, falling to its lowest level in three months instead of posting the modest improvement economists had anticipated.

The U.K. consumer confidence index declined to -19 from -16 in January, according to the Consumer Confidence Barometer compiled by GfK and the Nuremberg Institute for Market Decisions (NIM). Economists had forecast a slight rise to -15, making the latest reading the weakest since November.

Sterling slipped to a more than two-month low against the euro amid political uncertainty following a Green Party victory in a special election in England.

The euro traded within a tight range against the U.S. dollar after reports indicated the European Central Bank reduced its exposure to dollar assets in early 2025.

Among major benchmarks, London’s FTSE 100 gained 0.3%, while Germany’s DAX fell 0.2% and France’s CAC 40 declined 0.6%.

At the stock level, French steel pipe manufacturer Vallourec (EU:VK) advanced after reporting fourth-quarter revenue that exceeded expectations.

Swiss reinsurer Swiss Re (TG:SR9) also posted strong gains after announcing a 47% increase in net profit for 2025.

In contrast, London-listed recruitment firm Hays (LSE:HAS) dropped sharply following a significant decline in first-half earnings.

Melrose (LSE:MRO), owner of GKN Aerospace, also fell after issuing a 2026 revenue outlook below market forecasts.

Belgian telecom group Proximus (EU:PROX) moved notably lower after announcing job reductions and dividend cuts following a 6.6% year-over-year revenue decline in the fourth quarter.

German online food delivery platform Delivery Hero (TG:DHER) also declined after reporting annual gross merchandise value (GMV) slightly below analyst expectations.

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.

European equity markets traded broadly higher on Thursday, supported by upbeat earnings from Nvidia that helped counter lingering concerns around U.S. trade policy and ongoing geopolitical tensions.

Investor attention also turned to diplomacy, with officials from Iran and the United States scheduled to meet in Geneva for a third round of nuclear talks aimed at easing tensions and avoiding a potential conflict.

The French CAC 40 Index climbed 0.8%, while Germany’s DAX Index added 0.4%. The U.K.’s FTSE 100 Index posted a more modest gain of 0.2%.

Shares in London Stock Exchange Group (LSE:LSEG) surged about 4% after the exchange operator unveiled plans for a £3 billion share buyback program alongside reporting a 56.5% increase in pretax profit for 2025.

Italian energy major Eni (BIT:ENI) advanced 1.4% following the announcement of a 35% year-on-year rise in fourth-quarter adjusted net profit.

German sportswear company Puma (TG:PUM) jumped 6% after forecasting a smaller EBIT loss for fiscal year 2026.

Insurance giant Allianz (TG:ALV) slipped 1.3% as investors reacted to 2026 guidance that came in below market expectations.

Reinsurer Munich Re (TG:A2TSS7) declined 2.6% after reporting a sharper-than-anticipated drop in fourth-quarter profit, weighed down by adverse currency movements.

French industrial group Bouygues (EU:EN) gained 1.2% after delivering full-year earnings in line with analyst forecasts.

Schneider Electric (EU:SU) rose 2.6% after announcing record annual revenue of €40.15 billion, driven by strong demand for data-center infrastructure linked to artificial intelligence growth.

Payments company Worldline (EU:WLN) fell 3% after confirming it had entered into a definitive agreement to sell its Indian operations to local payments firm BillDesk.

Utility group Engie (EU:ENGI) rallied 7.3% after agreeing to acquire the United Kingdom’s largest electricity distribution network in a £10.5 billion ($14.2 billion) deal.

European equities traded unevenly on Thursday morning as investors assessed a heavy flow of corporate earnings across the region alongside fresh results from U.S. chipmaker Nvidia.

At 08:10 GMT, Germany’s DAX slipped 0.2%, while London’s FTSE 100 edged down 0.1%. France’s CAC 40 outperformed, rising 0.3%.

Earnings Take Centre Stage

Corporate earnings dominated market attention amid one of the busiest reporting days of the European season.

According to Bank of America, fourth-quarter earnings across Europe are modestly outperforming expectations, although the broader outlook remains fragile due to narrow leadership and strong market reactions to companies missing forecasts.

With just over half of STOXX 600 constituents having reported, earnings per share growth is currently running at around 2% year-on-year, compared with consensus expectations for a 2% decline at this stage of the reporting cycle.

“The upside surprise to index earnings is dominated by financials and industrials, while tech has been the main drag,” BofA’s strategists led by Andreas Bruckner said in a note.

Among individual companies, Deutsche Telekom (TG:DBK) reported a 9.2% decline in fourth-quarter adjusted net profit, citing currency headwinds from a weaker U.S. dollar that reduced contributions from its majority-owned T-Mobile US business, while also lowering growth expectations for its domestic market.

Automaker Stellantis (BIT:STLAM) announced its first annual loss on record after earlier disclosing €22.2 billion in charges linked to a scaling back of its electric-vehicle ambitions.

Insurance group Allianz (TG:ALV) delivered record operating profit for 2025 but disappointed investors with 2026 guidance that came in below analyst forecasts.

French insurer AXA (TG:AXA) posted full-year results broadly in line with expectations, with underlying earnings per share increasing 8% year-on-year and reaching the upper end of its target range.

Swiss chemicals company Clariant (BIT:1CLN) exceeded fourth-quarter earnings expectations, marking its third consecutive year of margin expansion.

German sportswear manufacturer Puma (TG:PUM) projected an operating loss of €50 million to €150 million for the current year, despite reporting a smaller-than-expected loss in 2025.

Meanwhile, Schneider Electric (EU:SU) reported record annual revenue, surpassing €40 billion for the first time, supported by triple-digit demand growth tied to data centre investments and setting a double-digit profit growth target for 2026.

Nvidia Beats Expectations but Fails to Excite Investors

In the United States, Nvidia (NASDAQ:NVDA) reported better-than-expected quarterly results late Wednesday and issued revenue guidance above market forecasts, reflecting continued strong spending by major technology companies on artificial-intelligence infrastructure.

The semiconductor group projected fiscal first-quarter revenue of $78 billion, plus or minus 2%, compared with analysts’ consensus estimate of $72.60 billion, according to LSEG data.

Despite the beat, after-hours gains were limited, as investors accustomed to substantial upside surprises over the company’s previous 14 reporting quarters reacted cautiously to what were viewed as relatively uneventful results.

Economic Data and Sentiment in Focus

Markets were also awaiting regional economic indicators, including business confidence readings from Italy and Spain as well as broader EU economic sentiment data.

In the UK, confidence among business and professional services firms improved significantly during the current quarter, ending more than a year of declining sentiment, although consumer-focused sectors remained subdued.

The Confederation of British Industry’s quarterly services survey showed optimism in business and professional services rising to -3 in February from -50 in November, the strongest reading since August 2024.

Oil Prices Hold Steady Ahead of U.S.-Iran Talks

Oil markets were broadly stable, trading near seven-month highs as investors awaited developments from a third round of nuclear discussions between the United States and Iran scheduled later in the day.

Brent crude futures gained 0.2% to $70.84 per barrel, while U.S. West Texas Intermediate futures rose 0.2% to $65.62.

U.S. envoys, including special representative Steve Witkoff and presidential adviser Jared Kushner, are expected to meet Iranian officials in Geneva as Washington seeks progress on Tehran’s nuclear programme.

U.S. President Donald Trump has warned that “bad things” could happen if meaningful progress is not achieved, raising concerns that a prolonged conflict could disrupt supply from Iran, the third-largest crude producer within OPEC.