European Markets Climb Amid Economic Reports and Geopolitical Tensions
LONDON — European stock markets saw gains on Friday, as traders sifted through a mix of economic data and earnings reports while keeping an eye on escalating tensions between the United States and Iran.
The pan-European Stocks 600 index was up 0.4% by midday in London. The UK’s FTSE100 increased by 0.5%, while France’s CAC40 saw a rise of 0.8%. Germany’s index added nearly 0.3% as well.
Several European companies released earnings, including Air Liquide, Danone, and British American. Notably, mining giant Anglo American reported a 0.7% increase in its adjusted report by midday. According to its latest figures, core revenue rose to $6.4 billion in 2025 from $6.3 billion the previous year, largely supported by strong copper and iron ore performance, along with significant cost savings of $1.8 billion. However, the company did face a net loss of $3.7 billion due to challenging market conditions, including a hefty pre-tax write-down of $2.3 billion in its De Beers division. CEO Duncan Wanblad mentioned plans to move forward with separating De Beers from the group.
On the economic front, traders are analyzing various data sets, including UK retail sales figures and German producer price stats, alongside purchasing managers’ index (PMI) updates for the eurozone countries.
According to the National Bureau of Statistics, UK retail sales jumped 1.8% in January 2026, a noticeable improvement from the 0.4% growth in December. Sales volumes also surged 4.5% year-on-year. Meanwhile, UK public finances showed a surplus of £30.4 billion ($40.8 billion) in January, doubling the previous year’s figures, and public borrowing decreased by 11.5% compared to the same period last year.
The British pound held steady against the dollar at around $1.347. Bond yields on British gilts varied notably, with the yield on the 10-year gilt dipping 2 basis points to 4.35%, while the 2-year gilt saw a small uptick, rising less than 1 basis point to 3.576%.
Heightened geopolitical tensions were also a focal point after U.S. President Donald Trump indicated on Thursday that a decision regarding potential military action against Iran would come in the next ten days.
U.S. futures improved overnight, as key economic data releases, like the Federal Reserve’s preferred inflation measure and fourth-quarter GDP report, were on the horizon.
In Asia-Pacific, markets mostly declined on Friday, influenced by yesterday’s downturn in Wall Street’s major indexes due to falling private credit stocks and ongoing issues in the Middle East.
