European shares moved slightly higher on Friday and remained on track to post weekly gains, supported by a steadily improving corporate earnings outlook and fading concerns about artificial intelligence disruption. However, ongoing geopolitical tensions limited stronger upside momentum.
The pan-European STOXX 600 index advanced 0.2% to 626.64 points in early trading, hovering just below a record high. Most major regional indices also traded in positive territory.
Luxury stocks led the gains after Moncler reported a 7% increase in fourth-quarter revenue, driven by solid demand in Asia and the Americas. The update lifted sentiment across the broader luxury sector, which climbed 1.2%.
The personal and household goods sector also outperformed, rising 1.3%. The move followed a brokerage upgrade from Deutsche Bank, which raised its view on European consumer staples to “neutral” from “cautious,” boosting confidence in defensive stocks.
On the downside, French LNG containment specialist GTT declined 3.3% after reporting annual revenue that came in slightly below market expectations.
For the week, the STOXX 600 was set to record its strongest performance since early January. Investors were encouraged by improving earnings visibility across sectors, while concerns that new AI models could rapidly disrupt traditional business models eased in the short term.
At the same time, markets continued to monitor developments in the Middle East. President Donald Trump warned Iran that it must reach an agreement over its nuclear program or face serious consequences, adding a layer of geopolitical risk to global markets.
