European shares are set to advance for a fourth week in a row as strong earnings draw more investors to the region.
The Stoxx Europe 600 Index gained 0.4% by 2:07 pm in London, paring an earlier advance after data showed the US economy grew less than expected in the final quarter of 2025. Separately, the Federal Reserve’s preferred measure of underlying inflation rose the most in nearly a year in December.
The European benchmark received an initial boost after euro-zone business activity surpassed expectations, thanks to surprise growth in Germany. The consumer products and chemicals sectors outperformed, while the energy and healthcare shares were among the biggest laggards.
“The miss on the GDP is even significant than the beat on inflation,” said Vincent Juvyns, chief investment strategist at ING in Brussels. “I don’t expect Wall Street to like this data particularly.”
In individual stocks, Air Liquide SA climbed 4.0% after the French industrial-gas producer posted second-half earnings ahead of expectations and raised its dividend. Moncler SpA shares jumped as much as 13%, the most since September 2024, following results that Barclays Plc said were significantly ahead of estimates.
The main regional index touched a fresh record high earlier this week as investors remain upbeat about company results and the economic outlook. MSCI Europe firms have posted a 3.7% increase in fourth-quarter profits, compared with analyst estimates of 1.3%, according to data compiled by Bloomberg Intelligence.
“The overall context is quite healthy, as earnings have sizable surprised on the upside again, financial conditions keep improving, and the global economy is showing remarkable resilience,” said Roberto Scholtes, head of strategy at Singular Bank.
Geopolitical developments also remain in focus, with US President Donald Trump saying Iran had 15 days at most to reach a deal over its nuclear program.
“If conflict is imminent it is likely to be short lived,” said Barclays strategists led by Emmanuel Cau, adding that equity selloffs driven by geopolitics usually present good buying opportunities.
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With assistance from Michael Msika, Rose Henderson and Julien Ponthus.
This article was generated from an automated news agency feed without modifications to text.
