European stock markets steady, corporate earnings reports continue to be released, inflation data becomes the focus

Investing.com - European stock markets traded flat on Friday as investors digested more regional corporate earnings reports and key inflation data, ending a busy week.

As of 03:10 AM Eastern Time (16:10 Beijing Time), the German DAX index was roughly unchanged, the French CAC 40 index fell 0.1%, and the UK FTSE 100 index rose 0.2%.

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Quarterly Earnings Reports Continue to Roll Out

On Friday, more earnings reports were released for investors to evaluate, marking the end of a busy week of European quarterly results.

Currently, over half of the STOXX 600 components have reported their Q4 results. European companies’ profits slightly exceeded expectations, helping the broad index hit a record high on Thursday.

Swiss Reinsurance (SIX:SRENH) announced annual net profit of $4.76 billion, a record high and up 47% year-over-year. However, the company’s life and health reinsurance divisions failed to meet profit targets due to $650 million in assumed update costs from underperforming portfolios in Australia, Israel, and South Korea.

BASF (ETR:BASFN) reported a 9.5% decline in full-year profit, with its core chemicals business nearly breaking even in Q4. The German chemical giant is heavily reliant on capital expenditure cuts to boost free cash flow.

Holcim (SIX:HOLN) announced a record 18.3% recurring EBIT margin for 2025, up 80 basis points. The Swiss building materials manufacturer completed its North American business spin-off and immediately signed agreements to acquire European wall manufacturer Xella and a majority stake in Peruvian Cementos Pacasmayo.

Melrose Industries (LON:MRON) reported a 23% increase in adjusted operating profit for 2025 and achieved positive free cash flow for the first time in two years, despite rising net debt, as the UK aerospace and defense supplier returned £255 million to shareholders through buybacks and dividends.

Netflix Withdraws from Warner Bros Bidding War

Across the Atlantic, Netflix (NASDAQ:NFLX) announced on Thursday that it would not increase its bid for Warner Bros Discovery (NASDAQ:WBD). Warner Bros had previously deemed Paramount Skydance’s (NASDAQ:PSKY) latest offer as superior under its existing merger agreement with the streaming giant.

“We have maintained discipline, and at the price needed to match Paramount Skydance’s latest bid, the deal no longer appears financially attractive, so we declined to match it,” Netflix co-CEOs Ted Sarandos and Greg Peters said in a statement.

Regional Inflation Data

On the economic front, France’s Q4 GDP grew 0.2%, in line with expectations, while February consumer inflation jumped 0.7% after falling 0.3% last month.

Germany’s inflation data will be released later, with European Central Bank policymakers closely watching ahead of next month’s policy meeting.

Crude Oil Prices Likely to End Week Lower

Oil prices edged higher on Friday but are set to end the week lower, after the US and Iran extended negotiations over Tehran’s nuclear program, easing concerns about potential supply disruptions.

Brent crude futures rose 0.7% to $71.29 per barrel, while US WTI crude futures increased 0.8% to $65.74 per barrel.

This week, Brent was roughly flat, but WTI declined about 1%, giving back some of last week’s gains.

Negotiations over Iran’s nuclear ambitions concluded on Thursday without a clear agreement, but both sides plan to resume talks. Omani Foreign Minister Sayyid Badr al Busaidi posted on X (formerly Twitter) after the Geneva meeting that technical discussions are scheduled for next week in Vienna.

Tensions surrounding Iran have been a major driver of oil prices in February, as the US has amassed a large military presence in the Middle East and threatened action if Tehran does not accept an agreement.

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