European Stocks Near Five-Month High as Earnings Optimism Outweighs Inflation Concerns

European equities advanced on Friday, with the pan-European STOXX 600 climbing 0.2% by 07:17 GMT, buoyed by strength in miners and chemical stocks. The index is trading near its highest level in almost five months, supported by a largely upbeat corporate earnings season.

Geopolitical Focus: U.S.-Russia Talks
Investors are also watching the high-profile meeting in Alaska later today between U.S. President Donald Trump and Russian President Vladimir Putin, where discussions will center on securing a Ukraine ceasefire and exploring a potential nuclear deal.

Global Market Context
Global equities gained despite:

• Hot U.S. producer price data reducing the likelihood of a 50 basis point Fed rate cut in September, though a smaller cut remains likely.
• Weak Chinese economic data pointing to tariff-related pressures on growth.

Corporate Movers

• NKT (+9.1%) surged after the Danish power cable solutions company upgraded its full-year outlook.
• ASML (-1.5%) slipped after U.S. peer Applied Materials cut its Q4 earnings forecast, citing soft Chinese demand and tariff-related uncertainty. ASML had previously warned in mid-July about potential difficulty meeting its 2026 growth targets.
• Chipmakers BE Semiconductor (-0.7%) and ASMI (-1.1%) also declined in sympathy with sector weakness.
• Pandora (-11.9%) was the biggest laggard on the STOXX 600 after the Danish jewelry maker’s Q2 organic revenue missed analyst expectations.

Outlook
With earnings season largely delivering positive surprises, European markets remain resilient despite mixed global macro signals. Traders will now turn their attention to U.S.-Russia diplomatic developments and upcoming central bank policy cues for direction.