European Stocks Close Mixed for 2nd Session

European stocks closed mixed for a second session on Friday as markets assessed a batch of earnings reports and fresh inflation data for hints on the European Central Bank's rate outlook. The Eurozone's STOXX 50 fell 0.5% to 6,130 and the pan-European STOXX 50 gained 0.2% to a new record of 634. EU-harmonized inflation rates in France and Spain were ahead of their expectations, but the gauge from Germany unexpectedly eased, maintaining earlier expectations that the ECB is due to hold its key rates for the upcoming meetings. Banks closed sharply lower, with Santander losing nearly 3% on reports that it is likely to face defaults from Market Financial Solutions in their ongoing collapse. Meanwhile, BASF fell 2% after reporting a drop in annual sales. Outside the Eurozone, Swiss Re jumped 3.8% after recording a sharp annual increase in profit, and Deutsche Telekom added 3.6% as markets continued to digest their earnings results from yesterday.

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.