Source: Sharecast
Most major indices were in the green early on, though benchmarks in London and Zurich were registering small losses, resulting in a 0.1% gain for the Stoxx 600, with auto stocks the standout performers following a strong quarterly update from Stellantis.
On Thursday, the pan-European index pulled back from the record closing high of 573.79 reached the previous session, on the back of weakness across the banking sector.
Markets have largely been rangebound this week, pausing for breath after the recent rally, with the start of third-quarter reporting season likely to keep risk appetite in check.
"The great reality check otherwise known as third quarter earnings season is upon us. The overall outlook for reporters looks robust," said Derren Nathan, head of equity research at Hargreaves Lansdown.
"But one quarter’s numbers alone aren’t enough to justify the current market optimism. Rational investors need to keep at least one eye firmly on the future, so comments around the immediate and longer-term outlooks will be more important than ever."
In economic data, Italian industrial output slumped by 2.4% in August, the country's National Institute of Statistics reported, following a 0.4% gain in July. This was the biggest monthly decline since December and much worse than the 0.4% decline expected by analysts.
No other major economic data is set to be released on the continent on Friday.
In equity news, Stellantis shares were higher after the auto manufacturer reported a 13% increase in vehicle shipments in the third quarter, helped by 35% growth in North America. Renault and Mercedes-Benz also gained.
Jyske Bank was also performing well, extending gains the previous session after the Danish lender upgraded its profit forecast for 2025 due to favourable market conditions and a strong performance in asset management.
