European equities edged slightly higher on Friday, supported by steady risk appetite and optimism around corporate earnings, even as investors remained mindful of ongoing geopolitical tensions and uncertainty over global trade policy.
The pan-European STOXX 600 was up 0.1% by 08:04 GMT. If current levels hold, the index is on course to end January with gains of about 2.6%, marking its seventh consecutive month of advances — the longest such streak since 2021.
That said, analysts cautioned that strong buying early in the year can sometimes exaggerate January gains. They noted that sustaining the rally will depend on continued earnings strength, alongside clarity on broader macro and policy risks.
Investor sentiment was also tempered by lingering concerns around geopolitics and the potential impact of U.S. tariffs on global growth.
At the stock level, German sportswear group Adidas jumped 4% after announcing a €1 billion ($1.2 billion) share buyback and reporting record sales for 2025.
Shares of Swiss watchmaker Swatch surged 7.3% after the company said sales rose 4.7% at constant exchange rates in the second half of last year.
Meanwhile, markets were also digesting reports that former Federal Reserve Governor Kevin Warsh is emerging as a leading candidate to become the next chair of the Federal Reserve. President Donald Trump is expected to announce his decision later on Friday.
