European markets open higher as investors monitor U.S.-Iran tensions

LONDON — European stocks opened higher on Friday as traders parsed through more economic data and earnings reports, while monitoring tensions between the U.S. and Iran.

The pan-European Stoxx 600 was up 0.1% shortly after the open, and London’s FTSE 100 and France’s CAC 40 rose 0.3%, while Germany’s Dax traded flat.

Friday will see more European companies reporting earnings, including Air Liquide, Danone, Sika, Anglo American, and Kingspan Group.

Mining giant Anglo American reported adjusted core earnings of $6.4 billion for 2025, up from $6.3 billion the prior year, driven by strong performance in copper and premium iron ore, as well as significant cost savings amounting to $1.8 billion for the year. Its net debt decreased to $8.6 billion.

However, the group reported a $3.7 billion net loss, largely due to a $2.3 billion pre-tax impairment on its De Beers diamond unit, amid challenging market conditions. Anglo American’s CEO Duncan Wanblad said the company is progressing with the separation of De Beers.

Traders are also parsing through economic data, including U.K. retail sales figures, German producer price figures, and PMI flashes for the U.K., France, Germany, and the euro zone.

The U.K.’s retail sales figures were estimated to have risen 1.8% in January 2026, up from a 0.4% increase in December 2025, pointing to an uptick in the economy, according to data from the Office for National Statistics. Additionally, sales volumes rose by 4.5% over the year.

Britain’s public finances, released Friday, showed that the public sector recorded a £30.4 billion ($40.8 billion) surplus in January 2026, which is double the level recorded a year earlier. Public borrowing stood at £112.1 billion since the start of the fiscal year in April 2025, 11.5% less than the same period a year ago.

The British pound was down 0.1% against the dollar, trading at $1.344, following the release of the data. British government bond yields, known as gilts, edged higher. The 10-year Gilt was up less than a basis point to 4.376%, while the 2-year Gilt rose 1 basis point to 3.588%.

Geopolitical tensions are also in focus after U.S. President Donald Trump said on Thursday he would decide whether to take military action against Iran in the next 10 days.

U.S. futures climbed overnight as key economic data is due to be released, including the personal consumption expenditures index, which is the Federal Reserve’s preferred inflation gauge, and the gross domestic product report for the fourth quarter.

Asia-Pacific markets were mostly lower on Friday, after the three major Wall Street indexes were down overnight amid a drop in private credit stocks and the tensions in the Middle East.