European shares rise as investors focus on earnings
The pan-European STOXX 600 index rose 0.5% to 549.48 points, as of 0931 GMT, and was on track for a second weekly gain.
Other major regional indexes also rose, with France's CAC 40 leading the pack with 0.6% gain.
Wall Street indexes touched record highs on Thursday after strong economic data and earnings reports showed American consumers remained willing to spend.
In Europe, positive corporate news helped offset concerns on trade after U.S. President Donald Trump threatened to impose a 30% tariff on the European Union.
Investors awaited clarity from the U.S.-EU trade talks, with the bloc preparing retaliatory measures in case negotiations with Washington failed.
'Across the globe, analysts have already downgraded near-term earnings forecasts. So the bar is quite low to beat,' said Viresh Kanabar, macro strategist for asset allocation at Macro Hive.
'The only tariff that's in place is a 10% tariff on Europe. It's not damaging. It's only if the rate increases that it will have a lasting impact.'
Britain and Germany signed a wide-ranging friendship treaty on Thursday that aims to deepen ties in areas such as defence and transport, as the UK attempts to reset ties with the EU.
The oil and gas sector led the broad-based gains in Europe, up 1.2%, tracking higher oil prices after the European Union agreed to new sanctions against Russia.
Industrials stocks touched a record high, up 0.7%, led by gains in Saab.
The Swedish defence material maker jumped 10.8%, taking year-to-date gains above 130%, after it posted higher-than-expected second-quarter earnings and raised its sales outlook.
Vestas Wind Systems gained 12.3% after J.P. Morgan upgraded the Danish wind turbine maker to 'overweight' from 'neutral'.
SKF rose 5.4% after the Swedish industrial bearings maker reported second-quarter earnings above market estimates.
Getinge gained 6.3% after the Swedish medical equipment maker reported second-quarter core earnings above market expectations.
On the flip side, GSK fell 5.7% after a U.S. FDA advisory panel recommended against approving its blood cancer drug Blenrep.
Swedish home appliances maker Electrolux slumped 14.8% after poor second-quarter performance in Europe and India's Reliance Industries said its retail unit acquired home appliance maker Kelvinator from Electrolux.
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Express Tribune
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Geo-economics of trade and development
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