European stock markets rise as investors digest corporate earnings; UK retail sales surge significantly

Investing.com - European stock markets edged higher on Friday as investors digested more corporate earnings reports and a large amount of economic data, while keeping an eye on tensions between the US and Iran.

As of 03:05 AM Eastern Time (16:05 Beijing Time), Germany’s DAX index was up 0.2%, France’s CAC 40 index rose 0.5%, and the UK’s FTSE 100 index increased 0.4%.

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Corporate Earnings Week Nears End

A busy quarter for earnings reports is coming to a close, but more data remains for investors to digest on Friday.

Anglo American (LON:AAL) reported a loss of $3.7 billion, after its diamond business again recorded significant impairments. The mining company continues to push forward with divesting non-core assets and advancing its merger plans with Teck Resources.

French food group Danone (EPA:DANO) expressed confidence in its 2026 outlook, supported by better-than-expected 2025 sales and cash flow. Growth in Chinese infant food demand and cost reductions improving profit margins have contributed to this optimism.

Sika (SIX:SIKA) announced a 16% decline in full-year net profit, as the Swiss specialty chemicals manufacturer faces structural declines in the Chinese market and a sharp drop in US commercial construction activity following a prolonged government shutdown.

Aston Martin Lagonda (LON:AML) reported a decline in full-year wholesale volume and announced it will sell the rights to its Formula 1 team name to an affiliate company for £50 million in cash.

AstraZeneca (LON:AZN) announced that the US Food and Drug Administration has approved its Calquence drug as the first all-oral, fixed-duration regimen for treating adult patients with chronic lymphocytic leukemia and small lymphocytic lymphoma.

UK Retail Sales Surge

Turning to Friday’s economic data, UK retail sales in January surged, surpassing last month’s significant increase, indicating consumer confidence remains relatively strong at the start of the new year.

According to data released earlier by the UK’s Office for National Statistics, retail sales rose 1.8% month-over-month in January, compared to a 0.4% increase in December.

Year-over-year, sales increased by 4.5%, down from the previously reported 2.5% annual growth rate, which was revised lower from earlier estimates of 1.9%.

Additionally, German producer prices fell more than expected in January, declining 3% year-over-year, compared to an expected decrease of 2.1%.

Investors will also digest PMI data for the entire Eurozone later in the trading day, while across the Atlantic, the core PCE index, a key inflation indicator watched closely by the Federal Reserve, will be released.

Last week, another report showed that the US Consumer Price Index rose less than expected in January, boosting market bets that the Fed could start a new round of rate cuts as early as June.

Crude Oil Prices Likely to Record Weekly Gains

Oil prices stabilized on Friday, potentially marking their first weekly increase in three weeks, as tensions between the US and Iran escalated, raising concerns over supply disruptions in the Middle East.

Brent crude futures were roughly flat at $71.66 per barrel, while US WTI crude futures fell 0.1% to $66.35 per barrel.

Both contracts hovered near their highest levels since early August, with weekly gains expected to exceed 6%.

Tensions remain high, with President Trump stating on Thursday that if Iran does not reach an agreement on its nuclear program within 10 to 15 days, “very bad things” could happen, raising the possibility of military action.

Any escalation involving Iran, a major OPEC oil producer, could threaten the flow of oil through the Strait of Hormuz, a critical chokepoint responsible for about one-fifth of global oil transportation.

This article was translated with the assistance of artificial intelligence. For more information, please see our Terms of Use.