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European equities traded mixed on Friday, as investors balanced a fresh round of corporate earnings against a sharp overnight selloff in U.S. technology shares, while awaiting key regional growth data for further direction.
By 03:05 ET (08:05 GMT), Germany’s DAX edged up 0.2% and the U.K.’s FTSE 100 gained 0.4%, while France’s CAC 40 slipped 0.3%, reflecting cautious sentiment across the region.
Wall Street tech selloff dents risk appetite
Market sentiment in Europe was weighed down by a renewed bout of volatility on Wall Street, where concerns over stretched artificial intelligence valuations triggered a sharp selloff in technology stocks. The Nasdaq Composite tumbled more than 2% on Thursday as investors reassessed lofty AI-driven valuations, a move that spilled over into Asian markets and carried into early European trade.
Still, the pullback follows a strong rally earlier in the week fueled by optimism around AI and solid corporate earnings. As a result, Europe’s main equity benchmarks remain on track for weekly gains of roughly 0.3% to 0.8%, despite Friday’s cautious tone.
Earnings remain in focus
Corporate results continued to dominate investor attention as the quarterly earnings season nears its end.
NatWest Group reported a 24% jump in annual profit, coming in slightly ahead of market expectations. The British lender also unveiled more ambitious performance targets as it deepens its push into the U.K.’s wealth management sector, a market seen as expensive but potentially high growth.
In Norway, aluminum producer Norsk Hydro posted fourth-quarter earnings that beat forecasts, with higher aluminum prices offsetting weaker performance in its downstream operations.
French IT services group Capgemini reported full-year revenue above its own guidance, supported by stronger fourth-quarter growth. Demand was boosted by its recently acquired WNS unit, which has helped drive growth in AI-powered business process services.
Meanwhile, French aerospace group Safran forecast higher revenue and earnings for 2026, after delivering improved profitability last year on the back of strong aftermarket demand for its civil aircraft engines.
Growth and inflation data awaited
On the macro front, data released earlier Friday showed German wholesale prices rose 1.2% in January compared with a year earlier. However, attention is now firmly on the euro zone, with flash estimates of fourth-quarter GDP growth due later in the session. Economists expect the bloc to have expanded by 0.3% quarter-on-quarter, translating into annual growth of around 1.3%.
Investors are also looking ahead to U.S. inflation data due later in the day. Forecasts point to a 0.3% monthly rise in core inflation for January, which would slow the annual rate to 2.5% from 2.7%. A stronger-than-expected reading could see markets scale back bets on a Federal Reserve rate cut in June, potentially weighing further on global equities.
On the political front, reports indicated that U.S. President Donald Trump is considering easing some tariffs on steel and aluminum products, as his administration seeks to address rising living costs—an issue that could have implications for global trade and inflation dynamics.
Overall, European markets remained cautious, caught between earnings optimism, macroeconomic uncertainty, and lingering concerns over valuations in global technology stocks.
