European Stocks Tread Water as Earnings Deluge Nears End, Inflation Data in Focus

European equities traded cautiously on Friday, as investors weighed a fresh batch of corporate earnings alongside key inflation data, wrapping up a volatile and data-heavy week.

At 03:10 ET (08:10 GMT), Germany’s DAX was little changed, France’s CAC 40 slipped 0.1%, while the UK’s FTSE 100 edged 0.2% higher.

Earnings season winds down, optimism holds

With more than half of STOXX 600 companies now having reported fourth-quarter results, European earnings are tracking slightly ahead of expectations. This has helped push the benchmark index to record highs earlier in the week, despite uneven performance across sectors.

Swiss Re (SIX:SRENH) posted record annual net income of $4.76 billion, up 47% year-on-year. However, the reinsurer’s life and health unit fell short of targets after booking a $650 million charge tied to underperforming portfolios in Australia, Israel and South Korea.

Germany’s BASF (ETR:BASFN) reported a 9.5% decline in full-year earnings, with its core chemicals division barely breaking even in the fourth quarter. The company leaned heavily on capital expenditure cuts to support free cash flow amid weak demand.

Holcim (SIX:HOLN) delivered a standout performance, posting a record recurring EBIT margin of 18.3% in 2025. The Swiss building materials group completed the spinoff of its North American business and moved quickly to expand in Europe and Latin America through acquisitions.

Melrose Industries (LON:MRON) reported a 23% jump in adjusted operating profit and returned to positive free cash flow for the first time in two years, though net debt rose as the company stepped up shareholder returns.

Netflix steps aside in Warner Bros takeover battle

In the U.S., Netflix (NASDAQ:NFLX) said it would not raise its bid for Warner Bros Discovery (NASDAQ:WBD), after the latter determined that Paramount Skydance’s offer was superior under the terms of its merger agreement.

Netflix co-CEOs Ted Sarandos and Greg Peters said matching the rival bid would no longer be financially attractive, reaffirming the company’s disciplined approach to acquisitions.

Inflation data in the spotlight

On the macro front, French GDP grew 0.2% in the fourth quarter, in line with expectations. However, consumer inflation rebounded sharply, rising 0.7% in February after a 0.3% decline the previous month.

Later in the session, German inflation figures are due, with European Central Bank policymakers closely monitoring price trends ahead of their next policy meeting in mid-March.

Oil steadies but weekly losses loom

Oil prices edged higher on Friday, but were still on track for weekly declines after the U.S. and Iran agreed to extend talks over Tehran’s nuclear program. The diplomatic progress eased fears of near-term supply disruptions from the Middle East, keeping energy markets under pressure despite ongoing geopolitical risks.