European Shares Rise Amid Corporate Optimism and Eased AI Fears

European shares experienced an uptick on Friday, bolstered by positive corporate earnings and diminished fears around artificial intelligence disruptions, despite ongoing geopolitical tensions tempering excitement.

The pan-European STOXX 600 index saw a gain of 0.2% to 626.64 points as of 0814 GMT. This placed it just below an all-time high, with regional benchmarks generally recording positive results. Luxury brand Moncler stood out by climbing 13% after revealing a fourth-quarter revenue increase of 7%, largely due to strong sales in Asia and the Americas. The broader luxury sector improved by 1.2%, while the personal and household goods sector led with a 1.3% gain, partly thanks to Deutsche Bank's upgraded outlook on European staples stocks.

However, not all companies fared as well. French LNG specialist GTT saw its shares fall 3.3% after delivering annual revenue that fell short of expectations. Meanwhile, global investors kept a watchful eye on geopolitical developments in the Middle East, as former President Donald Trump issued a stark warning to Iran regarding its nuclear program. The STOXX index was set to experience its most significant weekly increase since early January, with investor optimism towards corporate earnings overshadowing concerns around AI disruptions.