European stocks remained relatively stable on Friday, having reached a historic high the day before. This uptick was driven by strong quarterly earnings and a reduction in worries about a potential trade war initiated by the U.S.
Investors were focused on the upcoming release of the monthly U.S. employment figures later in the day, anticipated to offer insights into the Federal Reserve's potential interest rate decisions for this year. Projections suggest that U.S. employment may have increased by 170,000 jobs in January, following a rise of 256,000 in December, with the unemployment rate expected to remain steady at 4.1%.
In Germany, industrial production saw the largest decline in five months towards the end of 2024, primarily due to reduced output in the automotive sector, according to official data. December's output diminished by 2.4% from the previous month, which was more than the 0.6% decrease analysts had predicted.
In the U.K., house prices exceeded expectations in January and reached a record high, driven by heightened buyer interest preceding an upcoming stamp duty increase in April, as reported by mortgage lender Halifax. House prices rose by 0.7% from December, reversing a 0.2% decline the month before, and surpassing economists' forecast of a 0.4% increase. Annually, house price growth moderated to 3.0%, down from 3.4% in December.
The pan-European STOXX 600 index saw a slight increase to 544.85, following a 1.2% jump in the previous session. Meanwhile, the German DAX showed minimal change but maintained a positive trend, France's CAC 40 inched up by 0.2%, and the U.K.'s FTSE 100 fell by 0.2%.
Shares of Iveco Group NV surged by 14% after the company announced it was contemplating the spinoff of its defense unit. Denmark's largest bank, Danske Bank, climbed 7% on the back of strong financial results for the fourth quarter of 2024.
French healthcare giant Sanofi SA saw its shares drop by over 1%, following the announcement of a share buyback program valued at up to 2 billion euros ($2.1 billion). L'Oréal, the cosmetics leader, declined by 2% after its fourth-quarter sales failed to meet expectations.
Legal & General witnessed a 7% rally after agreeing to sell its U.S. protection division to Meiji Yasuda Life Insurance Company for $2.3 billion. On the other hand, emerging markets firm Ashmore fell 4% due to a reported 33% decline in half-year profits.
German consumer goods manufacturer Henkel experienced a 1% increase, announcing plans to divest its North American retail brands business to a First Quality Enterprises affiliate.
