Key facts
- European shares declined on Friday, potentially ending a four-week winning streak.
- Rising crude oil prices and renewed geopolitical tensions impacted market sentiment.
- Aggregate STOXX 600 earnings are forecast to grow 23.4%.
- Energy and materials profits are driving the earnings growth forecast.
European shares experienced a slight decline on Friday, threatening to break a four-week streak of gains. The shift in sentiment was attributed to rising crude oil prices and heightened geopolitical tensions. Despite these headwinds, a robust earnings season has offered a buffer, with aggregate earnings for the STOXX 600 index projected to increase by 23.4%, largely propelled by profits from the energy and materials sectors.