By Nikhil Sharma
(Reuters) -European shares were largely unchanged on Friday as investors awaited U.S. payrolls data, due later in the day, which is expected to show a moderation in jobs growth.
The pan-European STOXX 600 index was down 0.08%, as of 0930 GMT. Germany’s benchmark index hit a record high and was last up 0.1%.
The STOXX 600 is up 0.8% for the week and is on track to log its seventh straight weekly advance as robust quarterly earnings supercede global trade war-related worries.
U.S. nonfarm payrolls data is expected to show slowing jobs growth in January, but this may not be enough to push the Federal Reserve to resume rate cuts before the end of the first half.
on the day, L’Oreal fell 3.3% after the French cosmetics group reported its slowest quarterly rise in growth since the height of the pandemic, missing expectations.
The decline in the stock pulled the personal and household goods index 0.7% lower.
Porsche AG fell 6.4% after the carmaker warned that the cost of new models and battery-related expenses would dent its 2025 profits. This weighed on the automobiles-focussed index, driving it 0.7% lower.
Construction and materials was the top sectoral winner, adding 0.8%, after it was boosted by a 8.7% jump in Sweco following its fourth-quarter results.
Danske Bank, Denmark’s biggest lender, was up 6.6% after it posted record annual profits and said it would launch a new share buyback programme worth 5 billion Danish crowns ($696.6 million).
The week started on a dour note for global equities after U.S. President Donald Trump’s imposed trade duties on Canada and Mexico, but stocks quickly rebounded after the president issued a one-month pause in levies on imports from both countries.
Trump has, however, slapped additional 10% tariffs on imports of Chinese goods, with Beijing issuing retaliatory duties.
The STOXX 600 has outperformed its U.S. peers in the first six weeks of 2025 as investors continued to buy European equities, seeking an alternative to Wall Street’s expensive valuations.
“Trump’s tariffs wars don’t seem to be too much of an issue just yet,” said Daniela Hathorn, senior market analyst at Capital.com.
“I think (European) valuations are cheap, overall sentiment is positive and the European Central Bank is reacting accordingly, cutting rates to make sure that the balancing act of inflation and growth doesn’t tick against it.”
Among other stocks, Iveco Group soared 13.6% and was the top gainer on the STOXX 600 after the truck and bus maker said it was considering spinning off of its defence unit.
($1 = 7.1776 Danish crowns)
(Reporting by Nikhil Sharma; Editing by Sonia Cheema)
