European Stocks Set for Muted Open

European equities edged higher on Friday, trading at new record highs and capping a week marked by robust corporate earnings, AI-related jitters, persistent Middle East tensions, and renewed US trade policy uncertainty on a firm footing. The EURO STOXX 50 rose 0.4% to 6,180 points, gaining 0.8% on the week and notching its third advance in four weeks. The index is up nearly 4% in February, on track for its eighth consecutive monthly increase. Among individual stocks, reinsurer Swiss Re jumped 4.8% after reporting an almost 50% surge in net profit. British Airways and Iberia owner IAG added 0.5% after announcing a record financial performance for 2025, with operating profit rising 13% and revenue up 3.5%, respectively. Travel technology firm Amadeus IT Group gained 0.9% after beating Q4 earnings expectations. On the macro front, flash inflation readings from France and Spain surprised to the upside, reinforcing expectations that price pressures remain sticky across the region.

European equity markets were poised to open largely unchanged on Friday as investors prepared for key economic releases from across the region, while monitoring the latest AI-related developments and ongoing Middle East tensions. Inflation data are scheduled from Germany, France and Spain, alongside jobs figures from Germany and France and GDP data from Turkey. Corporate earnings are also due from major European firms, including London Stock Exchange Group, Holcim and BASF. European equities have so far remained resilient amid the so-called AI scare trade, with the benchmark Euro Stoxx 50 hovering near record highs. On the geopolitical front, the US and Iran agreed to continue nuclear negotiations next week following progress in Thursday’s talks in Geneva. In premarket trading, Euro Stoxx 50 futures were hovering around the flatline.

European stocks erased mid-session gains to close mixed on Thursday, as a batch of strong earnings results offset weakness in tech stocks following Nvidia's earnings call. The Eurozone's STOXX 50 eased 0.2% to 6,162 and the pan-European STOXX maintained yesterday's record high of 633. Argenx shares tanked over 8% despite topping profit estimates in the fourth quarter, while Deutsche Telekom slipped 2% despite beating earnings estimates and announcing a fresh stock buyback. In the meantime, ASML tanked 4.5%, tracking the late-afternoon slide for Nvidia as it failed to calm investors' concerns that AI capital expenditure could slow. On the other hand, Engie soared 7% on plans to acquire UK Power Networks. At the same time, ENI advanced 2.5% on a strong earnings report and Schneider Electric gained 3% after its results. Gains were also recorded on a busy results session for insurance giants, with Allianz and AXA advancing 1% and 1.6%, respectively.