Major European Markets Close Flat

The major European markets settled roughly flat on Friday as investors weighed the regional PMI data, and closely followed the speeches at the World Economic Forum in Davos, in addition to reacting to some earnings updates and other corporate news.

U.S. President Donald Trump said in his speech in Davos on Thursday that the U.S. will neither use force to acquire Greenland from Denmark nor hit the EU with new tariffs.

Trump added that a “framework” agreement had been reached over Greenland.

Ukrainian President Volodymyr Zelenskyy today criticized European leaders’ response to geopolitical threats in his speech at the WEF. He accused Europe of being “lost” while trying to convince Trump to “change” and support it, rather than uniting to defend itself.

The pan European Stoxx 600 ended down by 0.21%. The U.K.’s FTSE 100 and France’s CAC 40 both edged down by 0.07%, while Germany’s DAX crept up 0.01%. Switzerland’s SMI finished lower by 0.61%. The DAX and CAC 40 lost about 1.5% and 1.7%, respectively, in the week, while the FTSE 100 eased by about 0.7%.

Among other markets in Europe, Norway, Russia, Sweden and Turkiye closed higher.

Belgium, Czech Republic, Greece, Iceland, Ireland, Poland, Portugal and Spain ended weak, while Austria, Denmark and Netherlands closed flat.

In the UK market, mining stocks Glencore, Endeavour Mining, Fresnillo and Antofagasta gained 1.9 to 2.3%. Rio Tinto climbed 1.4% and Anglo American Plc added 1.08%.

Beazley moved up 3.25%. BAE Systems gained 2.1% and BP ended 1.57% up. Centrica, Unilever, BT Group and Rolls-Royce Holdings also closed notably higher.

Burberry Group ended more than 6% down. Admiral Group closed 5.76% down, and Aviva ended with a loss of about 5.1%. Easyjet, IAG, Informa and JD Sports Fashion settled lower by 2to 3%.

In the German market, SAP climbed more than 4%. Siemens Energy gained nearly 2.5% and Rheinmetall moved up 2.1%. Continental, Bayer, Scout24, Deutsche Telekom and RWE also closed on firm note.

Adidas closed lower by about 6%. Zalando ended 4.5% down, while Siemens Healthineers, Beiersdorf, Allianz, Daimler Truck Holding, Deutsche Bank, Deutsche Post, Commerzbank, Siemens, Heidelberg Materials, Porsche Automobil Holding, Mercedes-Benz and Merck lost 1 to 2.2%.

Shares of chemical giant BASF eased a bit after the company flagged weaker earnings.

In the French market, Thales gained about 2.5%. Safran, Legrand and TotalEnergies also posted strong gains.

Edenred tumbled 5%. Saint-Gobain, Bouygues, Kering, Societe Generale, AXA, Pernod Ricard and Stellantis lost 1 to 2%.

Data released by S&P Global showed the HCOB Flash Germany Composite PMI rose to 52.5 in January 2026, its highest level in three months, up from 51.3 in December and well above expectations of 51.6.

The services sector PMI rose to 53.3 in January from 52.7 a month earlier, while the manufacturing PMI came in at 50.5, rising from 48.3.

Survey results from S&P Global showed the French private sector experienced a contraction in January, the first time in three months, as clients were hesitant to place orders amidst the ongoing political deadlock regarding the country’s fiscal plans.

The HCOB flash composite output index fell to 48.6 in January from 50.0 in December. Economists had forecast the index to rise to 50.1. The index has remained below the no-change threshold for the first time since October last year.

The services PMI dropped unexpectedly to a nine-month low of 47.9 in January from 50.1 in the previous month. The score was seen at 50.3. The factory PMI rose to 51.0 from 50.7 in the prior month. The index was forecast to fall to 50.4 in January.

A report from INSEE showed France’s manufacturing business climate indicator rose to 105 in January 2026 from 102 in December 2025, above forecasts of 101 and remaining above its long-term average of 100 for a second month. This marked the highest reading since July 2022.

Data from the Office for National Statistics showed UK retail sales rebounded in December, rising by 0.4% in the month, in contrast to the 0.1% drop in November. Economists expected no change in the sales volume in December.

On a yearly basis, retail sales growth accelerated to 2.5% from 1.8% in the previous month. Sales were expected to climb only 1.0 percent.

In 2025, sales volume rose 1.3% with increases in both food and non-food stores, as well as non-store retailers. This followed a rise of 0.2% in 2024.

Elsewhere, a monthly survey published jointly by GfK and the Nuremberg Institute for Market Decisions showed that the British consumer confidence rose one point to -16 in January.

Data from S&P Global showed the UK S&P Global Composite PMI rose to 53.9 in January from 51.4 in the previous month, well above expectations of 51.5. January reading marked the sharpest growth in the UK private sector activity since April 2024.

The Services sector PMI rose to 54.3 in January from 51.4 in December, while the manufacturing PMI rose to a 17-month high of 51.6 in January, up from 50.6 a month earlier.

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