European Stocks Rise on Wall Street Momentum and Strong Corporate Earnings
European equities edged higher on Friday, taking cues from overnight gains on Wall Street as investors processed a flood of mostly upbeat quarterly earnings reports.
As of 03:05 ET (07:05 GMT), Germany’s DAX rose 0.5%, France’s CAC 40 gained 0.6%, and the UK’s FTSE 100 was up 0.2%.
The gains followed another record-setting session in the U.S., where the S&P 500 closed at an all-time high and the Nasdaq Composite also posted a fresh peak. Optimism was driven by strong earnings from major U.S. names such as Netflix, PepsiCo, and United Airlines.
Earnings Momentum Continues in Europe
In Europe, earnings season remains in full swing:
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Burberry (LON:BRBY) reported a smaller-than-expected 1% decline in comparable retail sales for Q1, offering early signs of stabilization for the struggling British luxury brand.
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Saab (ST:SAABb) raised its full-year organic sales growth forecast after posting a 32% jump in Q2 organic sales.
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Reckitt Benckiser (LON:RKT) announced a deal to sell its Essential Home division, maker of Air Wick, to Advent International for $4.8 billion including debt.
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Electrolux (ST:ELUXa) returned to profitability in Q2, reversing a sizable loss from the same period last year, thanks in large part to a recovery in North American operations.
Inflation Trends Offer ECB Policy Flexibility
Economic data showed that German producer prices dropped 1.3% year-over-year in June, in line with forecasts, adding to evidence of subdued inflation in Europe’s largest economy.
Earlier data confirmed that eurozone inflation rose 2.0% year-over-year in June—matching the European Central Bank’s (ECB) target. The limited inflationary pressure gives the ECB potential leeway to ease rates, though U.S. President Donald Trump’s proposed 30% tariff on EU imports may complicate policy decisions.
The ECB previously indicated it would likely hold interest rates steady during its upcoming July 23–24 meeting.
Oil Prices Climb on Supply Risks
Crude oil prices moved higher Friday amid supply concerns, as drone attacks on Iraqi Kurdistan’s oil fields disrupted operations and underpinned already tight market conditions.
At 03:05 ET, Brent crude was up 0.6% to $69.92 per barrel, while WTI crude also gained 0.6% to $67.96 per barrel.
A series of four consecutive days of drone attacks slashed the region’s oil output by half, contributing to the upward pressure on prices.
Additionally, seasonal travel demand continues to support the market. According to JPMorgan, global oil consumption averaged 105.2 million barrels per day in the first half of July, an increase of 600,000 bpd compared to a year earlier.
Even with an output boost from OPEC+, the International Energy Agency (IEA) recently warned that global oil supplies may remain tighter than they appear.
