EUROPEAN STOCK MARKETS CLIMB ON STRONG EARNINGS, AI VALUATION OPTIMISM

FRANKFURT, Feb 21 (Bernama-dpa-AFX) -- Major European stock markets closed higher on Friday, supported by strong corporate earnings and easing concerns over artificial intelligence valuations, though gains were tempered by rising geopolitical tensions, reported dpa/AFX.

Investor sentiment remained cautious after US President Donald Trump gave Iran 10–15 days to agree to a nuclear deal or face “bad things”. Tehran responded by warning that US bases in the Middle East could become “legitimate targets” in the event of an attack. 

In Europe, Germany’s DAX rose 217.12 points, or 0.87 per cent, to close at 25,260.69. London’s FTSE 100 gained 59.85 points, or 0.56 per  cent, to finish at 10,686.89, while France’s CAC 40 climbed 116.71 points, or 1.39 per cent, to end at 8,515.49.

In Frankfurt, Bayer fell 4.16 per cent, while Deutsche Bank advanced 2.10 per cent. Daimler Truck gained 1.64 per cent, Deutsche Börse rose 1.62 per cent, and BASF added 0.41 per cent. Zalando dropped 1.62 per cent and Infineon Technologies declined 1.39 per cent. Deutsche Telekom edged up 0.28 per cent and Deutsche Post closed marginally higher.

In London, British American Tobacco led gains with a 2.15 per cent rise. Prudential added 1.71 per cent, SSE climbed 1.69 per cent, and Centrica rose 1.26 per cent. St. James’s Place gained 1.02 per cent, while Rolls-Royce and Airtel Africa each advanced 0.91 per cent. Haleon and Rightmove also posted modest gains.

In Paris, Air Liquide surged 4.80 per cent, and Saint-Gobain rose 3.08 per cent. Societe Generale gained 1.96 per cent, Credit Agricole added 1.70 per cent, and Airbus climbed 1.41 per cent. Carrefour and BNP Paribas posted smaller advances, while Orange fell 2.15 per cent.

On the economic front, the UK recorded its largest budget surplus on record in January, driven by stronger tax receipts, the Office for National Statistics said. The public sector surplus widened to £30.4 billion from £14.5 billion a year earlier, £6.3 billion above forecasts and the highest since records began in 1993.

UK retail sales rose 1.8 per cent month-on-month in January, accelerating from a 0.4 per cent increase in December and marking the strongest growth since May 2024. Economists had expected a more modest 0.2 per cent gain.

In Germany, producer prices fell 3 per cent year-on-year in January, the steepest decline since April 2024, following a 2.5 per cent drop in December, according to Destatis. The decrease was largely driven by lower energy prices.

Meanwhile, euro area private sector growth picked up to a three-month high in February, supported by a rebound in German manufacturing. The HCOB flash composite output index rose to 51.9 from 51.3 in January, exceeding expectations of 51.5, according to S&P Global.

-- BERNAMA-DPA-AFX