European stocks rise for second day

The STOXX 50 gained 0.4% and the broader STOXX 600 rose 0.3% on Friday, as investors remained focused on corporate earnings while cautiously watching for signs of progress in ongoing trade negotiations between the United States and the European Union.

The modest gains helped European equities end the week on a more positive note, though both indices showed little net change over the five-day period, reflecting a broadly cautious trading environment.

Markets were driven largely by company-specific developments. Reckitt Benckiser climbed 1.9% after the consumer goods giant announced a deal to sell its essential home products unit to private equity firm Advent International for $4.8 billion. The sale is part of Reckitt's broader strategy to streamline its portfolio and focus on higher-margin health and hygiene segments, a move welcomed by investors.

Vivendi shares surged more than 10% following news that French financial market advisor AMF (Autorité des marchés financiers) concluded a mandatory takeover bid for the company by Bolloré Group is required. The decision ignited speculation of a potential full buyout or restructuring, boosting investor enthusiasm and sending the stock sharply higher.

Luxury fashion house Burberry edged up 0.3% after posting better-than-expected quarterly sales, a positive surprise amid broader concerns about softening demand in the high-end retail sector, particularly in Asia. Meanwhile, Swedish defense and aerospace firm Saab jumped nearly 11% after reporting second-quarter operating income that exceeded analysts' expectations, reflecting strong order intake and robust demand across its defense systems and aviation segments.

However, not all earnings results were met with optimism. Electrolux plunged more than 13%, the sharpest decline on the day, after the home appliance manufacturer maintained a cautious outlook. The company described the North American market environment as “neutral to negative,” while offering a “neutral” assessment for Europe, Asia-Pacific, and Latin America.

The downbeat tone disappointed investors, who had hoped for more clarity or improvement in global consumer demand trends.

Despite Friday’s gains, broader market sentiment remained mixed throughout the week, weighed down by global trade uncertainty, macroeconomic data, and geopolitical risks. While corporate earnings offered some bright spots, investors largely stayed on the sidelines, awaiting more definitive signs of momentum in trade talks between the US and EU before re-engaging more aggressively in risk assets.