Investing.com - European stock markets edged mostly lower Friday, with investors taking profits at the end of a positive week, although strong gains from luxury group Hermes helped the French market outperform.
At 03:15 ET (08:15 GMT), the DAX index in Germany dropped 0.4%, the FTSE 100 in the U.K. fell 0.3%, while the CAC 40 in France traded 0.3% higher.
Strong gains in Europe
European stock markets have had a good week, with Germany's DAX index leading the way, hitting a record high on Thursday and registering a gain of almost 4% this week.
The pan-Europe Stoxx 600 index also hit a new record high this week, prompting Goldman Sachs to raise its 12-month price target, citing factors such as lower risk premium, reduced energy prices, improved consumer confidence, and stronger economic growth as the key drivers.
Delay to US reciprocal tariffs
Investors are also breathing a sigh of relief Friday after President Trump delayed the levying of reciprocal tariffs on the U.S.’s major trading partners, including the European Union, until the beginning of April.
Trump on Thursday signed an executive order outlining plans to impose trade tariffs that would match or surpass those imposed by major trading partners on U.S. imports.
But Trump did not immediately impose any reciprocal tariffs, as he had previously threatened.
That said, the European Union is clearly in Trump’s sight, as at the accompanying press conference he took specific aim at the EU's "very nasty" trade policies, repeating his complaints at Brussels' decisions to fine US tech firms such as Google (NASDAQ:GOOGL), Apple (NASDAQ:AAPL), and Facebook (NASDAQ:META).
"We all love Europe, love the countries in Europe, but the European Union has been absolutely brutal on trade," he said, adding: "The EU's been very nasty and... they haven't treated us properly."
Ukraine peace in discussion
Also in the spotlight Friday will be the Munich Security Conference, as the major western powers get together to discuss the future of Ukraine and peace talks with Russia.
The summit comes just days after President Trump announced that Russia and Ukraine had agreed to start peace talks, with the summit likely to discuss what conditions and compromises Moscow and Kyiv are likely to demand as part of those negotiations.
Eurozone economy grew in Q4
The eurozone economy grew a touch faster than initially thought in the last quarter of 2024, growing by 0.1%, according to data released earlier Friday.
This was above the previous estimate which had shown stagnation.
Compared with a year earlier, the economy expanded by 0.9%, the same as in the previous quarter but a modest expansion from earlier quarters.
The European Central Bank has lowered borrowing costs five times since last June, and is expected to ease monetary policy a few more times this year in an attempt to stimulate its fragile economy.
Hermes reports strong jump in sales
There are more corporate results for investors to digest Friday, in what has generally been a strong earnings quarter in Europe.
Hermes (EPA:HRMS) stock rose 0.6% after the French luxury group reported an 18% rise in fourth quarter sales, continuing to outshine rivals, thanks to its wealthier customers as the industry suffers its slowest sales in years.
Norsk Hydro (OTC:NHYDY) stock rose 1.2% after the Norwegian energy company reported strong fourth-quarter 2024 results, benefiting from elevated alumina prices and favorable currency exchange rates.
Umicore (EBR:UMI) stock slumped 10% after the Belgian materials technology and recycling firm disappointed with its latest earnings report, raising concerns over its growth prospects.
NatWest (LON:NWG) stock fell almost 4% despite the U.K. lender reporting a bigger-than-expected profit for 2024 and hiking dividends. The U.K. government cut its stake in the bank again, prompting the lender to say it is confident it will fully return to private ownership this year.
Tomra (OL:TOM) stock surged 10% after the Norwegian recycling and sensor-based solutions company reported strong fourth-quarter results, posting strong year-over-year growth across its key business segments.
John Wood (LON:WG) stock slumped 30% after the energy consulting group disappointed with its negative cash flow guidance.
Crude rises on US tariffs delay
Oil prices rose Friday, and were on course to end three weeks of decline on relief that President Trump did not immediately impose reciprocal tariffs as initially threatened.
By 06:05 ET, the US crude futures (WTI) gained 0.2% to $71.36 a barrel, while the Brent contract rose 0.2% to $75.20 a barrel.
Both benchmarks are on track for weekly gains of around 1% after Trump delayed imposing reciprocal tariffs against countries that place tariffs on U.S. goods to April.
This delay provides more time to avoid a trade war, which would likely hit global economic activity, and thus the demand for energy.