FX.co ★ European Shares Hit Fresh Records

European equities inched higher on Friday, setting fresh record highs and closing a week defined by strong corporate earnings, AI-related volatility, ongoing tensions in the Middle East, and renewed uncertainty over US trade policy. The EURO STOXX 50 advanced 0.4% to 6,180 points, finishing the week up 0.8% and recording its third gain in four weeks. The benchmark is now up nearly 4% in February and remains on course for an eighth straight monthly increase.

At the stock level, Swiss Re rallied 4.8% after the reinsurer reported an almost 50% jump in net profit. IAG, the owner of British Airways and Iberia, rose 0.5% following the release of record 2025 results, including a 13% increase in operating profit and a 3.5% rise in revenue. Travel technology provider Amadeus IT Group added 0.9% after posting fourth-quarter earnings that topped expectations.

On the macroeconomic front, flash inflation data from France and Spain came in hotter than anticipated, reinforcing the view that price pressures across the euro area remain stubbornly elevated.