By Avinash P and Niket Nishant
Jan 30 (Reuters) – European stocks rose on Friday, with strong earnings putting the benchmark STOXX 600 index on course for its longest monthly winning streak since 2021.
The index rose 0.4% as of 0940 GMT and was set to end January with around a 3% gain, its seventh consecutive monthly advance.
The moves reflect resilient risk appetite despite trade frictions and geopolitical uncertainty, and signal that solid earnings can continue to draw investors.
German sportswear maker Adidas’ shares jumped 4.8% after it unveiled a 1 billion euro ($1.2 billion) stock buyback and reported record sales for 2025.
Swiss watchmaker Swatch also climbed 6.3% after it said sales grew 4.7% at constant exchange rates in the second half of last year.
Separately, data released on Friday showed that the euro zone’s largest economies grew at a modest but steady pace last quarter.
LINGERING RISKS COULD TEST MOMENTUM
New Year optimism can sometimes spur outsized stock buying in the first month of the year. However, analysts have cautioned that a range of factors, including robust earnings and an easing of trade tensions, will be crucial to sustaining the momentum.
“There is a level of uncertainty which could keep investors a little bit on edge going forward,” said Fiona Cincotta, senior market analyst at City Index.
Earnings from some luxury and technology heavyweights have disappointed markets this week. On Friday, shares of Signify, the world’s biggest light maker, fell 13% to its lowest since May following weaker-than-expected annual results.
Investors are also watching out for risks related to U.S. tariffs, especially after President Donald Trump’s spat with Europe over Greenland triggered wild price swings earlier this month.
“I don’t think investors would be able to stomach the geopolitical moves like those we’ve seen this month, across the remainder of the year. If the headlines continue, we would get to a point where investors would move into safe haven (assets) to avoid this level of volatility,” Cincotta said.
Separately, Trump is expected to name his pick for the U.S. Federal Reserve Chair on Friday. Former Fed Governor Kevin Warsh is reportedly a leading contender for the role.
“Warsh has been amongst the most market-friendly candidates… This pick may suggest a desire to calm speculation on Fed independence loss,” ING economists wrote.
(Reporting by Niket Nishant and Avinash P in Bengaluru; Editing by Janane Venkatraman and Harikrishnan Nair)
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