European shares were steady at a record high on Friday and on track for their eighth straight week of gains, while luxury stocks jumped after robust earnings from Birkin bag maker Hermès.

The pan-European STOXX 600 index was up 0.06%, as of 0930 GMT. The index has closed at a record high for the past four sessions, and been on its longest streak of weekly gains since March 2024.

“European equities remain an interesting alternative to the U.S. because valuations are a lot more favourable,” said Daniela Hathorn, senior market analyst at Capital.com.

Goldman Sachs raised its 12-month price forecast for Europe’s STOXX 600 index on Friday, citing factors such as a lower risk premium, reduced energy prices, improved consumer confidence, and stronger economic growth as the key drivers.

STOXX has outperformed its Wall Street peers and was up over 9% this year, primarily benefitting from robust corporate earnings from top European companies. This has somewhat helped offset uncertainty as markets await clarity on U.S. tariffs.

French luxury group Hermès rose 2.1% on Friday after it reported an 18% rise in fourth-quarter sales, showing robust appetite from wealthy shoppers for expensive luxury items such as its Birkin bags.

Other luxury goods companies also rose. Christian Dior climbed 1.1%, Ferragamo 2.2%, LVMH 1.4% and Kering 1.6%.
The gains lifted the European luxury goods index by 0.8%.

Basic resources led the sectoral gains and jumped 2% as metal prices rose on expectations that U.S. President Donald Trump‘s reciprocal tariffs plans would not come into effect until April.

Trump did not immediately impose reciprocal tariffs on Thursday, suggesting room for negotiations.

He instead kicked off what could be weeks or months of investigation into the levies imposed on U.S. goods by other trading partners and then devising a response.

“It seems like everyone wants to avoid an all-out trade war…. It feels like it’s not as bad as it could be and that’s the feeling we’re getting in equity markets,” Hathorn added.

On Friday, among other sectors, heavyweight healthcare firms lost 0.6%, dragged down by a 5% fall in Fresenius Medical Care after U.S.-listed Dialysis DaVita projected annual profit below estimates.

Telecommunications slipped 0.7%, as a 4.5% fall in Telecom Italia (TIM) pressured the index.
Tietoevry sank 8.3% after the Finnish IT services firm’s fourth-quarter earnings missed market estimates.

Tomra jumped 9% to a two-year high after the Norwegian recycling machinery maker beat fourth-quarter profit expectations.