European Stocks Close Mixed

European stocks erased early gains to close mixed on Friday, tracking the swings in North American markets amid as an uncertain rate outlook offset mostly positive earnings events. The Euro STOXX 50 rose 0.2% to 6,360, easing from a record high earlier in the session, and the STOXX Europe 600 fell 0.1% to 649. The inflation rate in the Eurozone was broadly in line with expectations to maintain bets that the ECB will deliver another rate hike this year. Saint Gobain surged 9% after posting an acceleration in second-quarter sales growth, and banks were supported by Credit Agricole posting stronger profits. Meanwhile, Enel lost 0.5% after releasing its results. BP, Novo Nordisk, Siemens Energy, Deutsche Telekom, and Allianz are due to publish results next week.

The STOXX 50 gained 1.1% and the STOXX 600 advanced 0.9% to hit record levels on Friday, tracking a global rally in technology shares as investors renewed their enthusiasm for AI-related stocks. Fresh corporate earnings and lower oil prices also supported market sentiment. ASML climbed 3.4%, Infineon surged 6.8%, STMicroelectronics went up 4.1% and Siemens Energy gained 3.6%. NatWest rose 3.8% after reporting a stronger-than-expected 29% increase in pre-tax profit, while Saint-Gobain advanced 4.8% after posting an acceleration in second-quarter sales growth. Engie added 4.2% after posting a 3.3% rise in earnings and Credit Agricole rose 3.6% after reporting higher profit for Q2. Worldline soared nearly 19% after its earnings report. In contrast, Vivendi plunged more than 13% to bottom the STOXX 600. On the week, the STOXX 50 is up 1%, while the STOXX 600 has gained 0.9%. For July, the STOXX 50 has risen 0.2%, while the STOXX 600 has advanced 1.3%.

European equity markets were set to open higher on Friday, building on the previous session’s gains as sentiment improved amid a global rally in technology stocks and renewed optimism surrounding the artificial intelligence sector. Semiconductor shares in the US and Asia led the advance, with strong earnings from Microsoft and Amazon reinforcing confidence in continued hyperscaler investment and resilient AI-driven demand. In Europe, investors will focus on July inflation data from the Eurozone, France, and Italy, along with Germany’s latest unemployment figures. On the corporate front, earnings reports are due from Linde, Enel, AXA, ENGIE, and NatWest, among others. In premarket trading, futures for both the Euro Stoxx 50 and the Stoxx 600 were up around 0.8%.