Frankfurt's DAX 40 closed about 0.9% firmer at 24,539 on Friday, halting a three-day losing run and ranking among the top-performing European indices. Market participants digested a slew of economic data and fresh corporate results. Preliminary figures showed the German economy expanded by a more-than-expected 0.3% on quarter in Q4 2025, following stagnation in Q3 and a 0.2% contraction in Q2. Separately, the inflation rate rose to 2.1% in January 2026 from December’s 15-month low of 1.8% and slightly above market expectations of 2.0%. Among key movers, Adidas shares continued at the forefront, rising 4.4% on news of a share buyback following strong results in 2025. The sporting goods company plans to acquire up to €1 billion worth of its own shares starting in early February. Other notable performers included SAP (3.7%), Brenntag (2.7%), Deutsche Telekom (2%) and Deutsche Bank (1.9%). Vonovia lagged, falling 1.3%. The index edged up 0.2% for the month but fell 1.5% over the week.
US stocks closed lower on Friday, with the S&P 500 and the Dow Jones down 0.4% and the Nasdaq tumbling 1.3%, as higher Treasury yields and a firmer dollar weighed on risk appetite after President Trump nominated Kevin Warsh to succeed Fed Chair Powell. Markets viewed the pick as reinforcing a more disciplined and cautious easing trajectory, pushing long-end yields higher and pressuring rate-sensitive after January’s strong rally. Materials, technology and communication services underperformed, while healthcare outperformed. Apple rose 0.5% despite solid earnings and resilient iPhone sales, as stretched valuations capped upside, while Visa slipped 2.9% after a largely priced-in earnings beat. ExxonMobil declined 0.7%, Chevron rose 3.3% on a profit beat, and American Express dropped 1.8% following an earnings miss, while Verizon surged 11.8% on stronger guidance. Despite the pullback, the S&P 500 gained 1.2% in January, with the Dow up 1.6% and the Nasdaq advancing 1.1%.
