European Shares Inch Higher In Cautious Trade

(RTTNews) - European shares inched higher on Friday but were on track for a weekly loss on heightened trade tensions and growing concerns about an economic slowdown.

Investors shrugged off official data that showed the U.K. economy logged an unexpected contraction at the start of the year on a sharp fall in production.

Gross domestic product shrank 0.1 percent on a monthly basis in January, following a growth of 0.4 percent in December, the Office for National Statistics reported. GDP was expected to grow 0.1 percent.

The pan European STOXX 600 was up 0.3 percent at 542.11 as the U.S. Congress passed a second Continuing Resolution (CR) to extend federal spending and avert a government shutdown through March 14, 2025.

However, the index was down nearly 2 percent for the week so far. The German DAX gained 0.3 percent, while France's CAC 40 and the U.K.'s FTSE 100 both added around 0.4 percent.

Italian banking group UniCredit edged down slightly after saying it has received the ECB authorization to acquire a direct stake in Germany's Commerzbank AG of up to 29.9 percent. Shares of the latter advanced 1.6 percent.

German automaker BMW fell 2.7 percent after posting a 37 percent drop in annual profit and warning of subdued Chinese demand.

Daimler Truck Holding rallied 5 percent after if forecast 5-15 percent increase in operating profit for 2025.

Universal Music Group plunged 5 percent after hedge fund Pershing Square Holdings cut its stake in the company.

Kering plummeted 10 percent in Paris after an announcement that Georgian designer Demna is set to exit Balenciaga to become creative director of Gucci.