Aug 14 (Reuters) – European shares were subdued on Friday but remained on course for a modest weekly decline, as investors weighed stalled efforts to end the U.S.-Iran war and awaited key euro zone data for a clearer read on the region’s economy.
The STOXX 600 rose 0.05% to 659.65 by 0710 GMT, hovering near record high levels despite retreating earlier in the week.
The index has been underpinned by a robust earnings season, with second-quarter profit expectations for Europe’s blue-chip companies rising for an eighth straight week. Aggregate STOXX 600 earnings are now forecast to grow 23.4%, led by soaring energy and materials profits.
Still, renewed geopolitical tensions and higher oil prices have weighed on risk appetite. Oil futures climbed 1% to $87.93 a barrel after the United States threatened an indefinite naval blockade of Iran, reviving concerns about disruptions to crude supplies.
Talks between Washington and Tehran remained deadlocked, with both sides hardening their rhetoric in recent days.
Meanwhile, softer U.S. consumer and producer price data this week reinforced expectations that the Federal Reserve may hold off on further monetary tightening.
Investors will now focus on euro zone employment and GDP figures due at 0900 GMT.
Europe’s technology led sectoral gains, rising 1.4%, while basic resources was the biggest decliner, falling 1.6%.
Corporate news was sparse as the earnings season drew to a close.
(Reporting by Ragini Mathur in Bengaluru; Editing by Rashmi Aich)
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