European shares moved slightly higher on Friday, supported by a mix of resilient risk appetite and optimism stemming from corporate earnings, even as geopolitical uncertainty and trade-related risks kept some investors cautious.
The pan-European STOXX 600 was up 0.1% as of 0804 GMT. If those levels were to hold through the end of the month, the benchmark would record a 2.6% rise for January, which would represent its seventh consecutive monthly advance - the longest such streak since 2021.
Market participants warned that the traditional New Year uplift in buying can sometimes produce outsized early-year gains. Analysts emphasized that a range of factors - notably continued robust earnings - will be important to sustaining the current momentum beyond this initial stretch.
Investors were also keeping an eye on external risks, including geopolitical tensions and the prospect of U.S. tariffs, which could temper sentiment and market flows.
In individual stock moves, German sportswear company Adidas climbed 4% after announcing a 1 billion euro stock buyback and reporting record sales for 2025. The buyback and the top-line result underpinned the stock's advance in European trading.
Swiss watchmaker Swatch saw a larger jump, rising 7.3% after reporting that sales expanded 4.7% at constant exchange rates in the second half of last year. The sales detail was highlighted by investors as a sign of demand resilience in the luxury and consumer discretionary segments.
Separately, investors were digesting reports that former U.S. Federal Reserve Governor Kevin Warsh was a leading candidate to be named the next chair of the U.S. central bank. The reports indicated that President Donald Trump was expected to announce his selection on Friday.
Overall, the session reflected a cautious optimism: supportive corporate results and capital-return measures helped lift specific names and sectors, while broader market direction remained sensitive to geopolitical developments and trade policy risks.