European equities nudged higher on Friday, with investors sifting through another wave of corporate results even as the region’s benchmarks looked poised to log weekly declines amid renewed worries over stretched valuations. By 08:10 GMT, Germany’s DAX added 0.4% and France’s CAC 40 rose 0.3%, while London’s FTSE 100 slipped 0.2%.

Risk appetite drew some support from a better-than-feared reporting season. LSEG data earlier in the week pointed to aggregate third-quarter earnings growth of about 4.3% for European corporates—comfortably above the 0.4% increase penciled in a week ago—helping to cushion the blow from recent macro jitters. Friday’s tape brought a mixed set: Daimler Truck reported a larger-than-expected 40% fall in Q3 operating profit but held full-year guidance, citing firming momentum in Europe and a recovery in North America. IAG, the parent of British Airways, delivered a modest profit rise broadly in line with expectations, though it warned on softer demand for U.S. economy seats. In France, Arkema trimmed full-year guidance on weak end-market demand, while ITV confirmed talks with Sky over a potential £1.6 billion sale of its media and entertainment unit. Low-cost carrier Wizz Air said it will push back delivery of 88 Airbus jets from FY2030 to FY2033, easing near-term capacity growth.

Even with today’s uptick, the main indices remain on course for a down week—potentially the sharpest drawdown since the tariff-related turbulence seven months ago. The DAX is tracking a loss just shy of 1% and the CAC 40 nearly 2%, with the FTSE 100 broadly flat. The pullback comes after a powerful year-to-date run: the DAX and FTSE 100 are both higher by more than 19% in 2025, and the CAC 40 is up close to 8%, leaving valuations sensitive to any disappointment on growth or guidance.

Fresh data offered a modest macro tailwind. German exports rose 1.4% in September from August, beating expectations and hinting at some resilience in external demand despite a soft global manufacturing backdrop. In the U.K., Halifax reported a 0.6% month-on-month rise in October house prices, with annual growth accelerating to 1.9% from 1.3%—a sign that lower mortgage rates and improved affordability are gradually supporting activity.

Near term, market direction hinges on whether earnings momentum can counterbalance valuation pressure and lingering global growth concerns. With central-bank policy settings largely on hold into year-end and cross-asset volatility elevated, investors appear inclined to reward delivery and discipline—particularly on cost control and cash returns—while fading rallies in more richly priced names.