Investing.com - European stocks rose Friday, boosted by generally positive quarterly corporate earnings and solid economic data despite elevated geopolitical tensions.
The DAX index in Germany closed 0.9% higher, the CAC 40 in France gained 0.7% and the FTSE 100 in the U.K. rose 0.5%.
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Recovery in eurozone economy
France’s economy grew modestly in the fourth quarter of 2025, slowing after a strong summer rebound, but still improved at a stronger rate than expected over the course of last year.
Quarterly growth eased to 0.2% from 0.5% in the third quarter when the euro zone’s second‑largest economy surprised on the upside, and over the course of 2025, the economy expanded 0.9%, outperforming the 0.7% assumption used in government budget planning.
Additionally, the number of people out of work in Germany remained unchanged in January, underscoring a sluggish recovery in Europe’s biggest economy.
In seasonally adjusted terms, the jobless figure remained the same as in December, at 2.976 million, with the jobless rate unchanged from 6.3% a month earlier.
The European Central Bank is expected to keep interest rates unchanged when it meets next week, with inflation close to target and the overall regional economy showing signs of recovery.
New Fed chair looming
That said, geopolitical tensions remain elevated, with the White House reported to be weighing further strikes on Iran, as a naval armada moves into the region.
Additionally, U.S. President Donald Trump signed an executive order declaring a national emergency and establishing a process to impose tariffs on goods from countries that sell or otherwise provide oil to Cuba.
Trump also stated late Thursday that he would announce his nomination to be the next Fed Chair later in the session, with reports suggesting that former Federal Reserve Governor Kevin Warsh is the leading contender.
Adidas reports record 2025 sales
Turning to the corporate sector, Adidas (ETR:ADSGN) was in the spotlight after the German sportswear giant reported record sales for 2025 and unveiled a €1 billion ($1.2 billion) stock buyback.
Swatch (SIX:UHR) said its sales grew 4.7% at constant exchange rates in the second half of last year, even as the Swiss watchmaker noted that profit fell sharply in 2025.
Caixabank (BME:CABK) delivered a 17.5% return on tangible equity and cut its bad loan ratio to a record low 2.1% while raising its dividend 15%, as Spain’s largest domestic bank posted net profit of €5.89 billion for 2025, up 1.8%.
On Wall Street, Apple (NASDAQ:AAPL) comfortably beat profit and revenue expectations for the holiday quarter, its fiscal first quarter, enjoying its best quarterly iPhone sales growth performance in over four years.
Crude, gold retreat from highs
Oil prices fell Friday, but were still set for hefty weekly gains on concerns a U.S. strike on Iran would disrupt supply from this key Middle Eastern producer.
Brent futures slipped 0.8% to $69.06 a barrel and U.S. West Texas Intermediate crude futures fell 0.7% to $64.97 a barrel.
Both contracts are still on course for 5% weekly gains, and are set to post their first monthly gain in six months with Brent up more than 16% to notch its biggest monthly jump since January 2022.
WTI is on track to rise more than 14% in January, its biggest monthly gain since July 2023.
Tensions have escalated amid a U.S. military buildup in the Middle East, with President Trump urging to make a deal on nuclear weapons or face a U.S. attack.
Gold prices fell sharply, retreating from record levels following the news that President Trump is set to announce his nominee for the next Federal Reserve Chair later in the day.
Warsh, the new favorite for the role, is seen as less dovish than other potential candidates, and this resulted in the U.S. dollar bouncing, to the detriment of commodities denominated in the greenback.
Spot gold slid 9.6% to $4,915 an ounce, while gold futures for April fell 7.9% to $4,932/oz.
That said, prices have risen significantly so far in January, heading for a sixth straight monthly gain and the largest monthly advance since 1982.
