European stocks mostly edged higher Friday as investors digested more quarterly earnings, but weekly losses look likely amid concerns over overheated valuations.

At 03:10 ET (08:10 GMT), the DAX index in Germany gained 0.4% and the CAC 40 in France climbed 0.3%, while the FTSE 100 in the U.K. fell 0.2%. 

Sentiment boosted by healthy earnings  

Sentiment has generally been supported by a healthy earnings season, with European firms expected to report growth of 4.3% in third-quarter earnings, on average, data from LSEG showed earlier this week, above the 0.4% increase analysts expected a week ago.

There are more corporate results to digest Friday.

Daimler Truck (ETR:DTGGe) reported a bigger-than-expected 40% drop in third-quarter operating profit on Friday, but the German auto giant stuck to its annual forecasts on the back of a positive momentum in Europe and a recovery in North America.

Britih Airways parent IAG (LON:ICAG) posted a modest rise in third-quarter operating profit, broadly matching expectations, but cautioned about softer demand for its U.S. economy-class seats.

French specialty chemicals company Arkema (EPA:AKE) lowered its full-year guidance amid weak demand in several key markets.

ITV (LON:ITV) said it was in talks with pay-TV company Sky, owned by Comcast (NASDAQ:CMCSA), over a potential sale of the British broadcaster’s media and entertainment unit for £1.6 billion ($2.15 billion) including debt.

Budget carrier Wizz Air (LON:WIZZ) has reached an agreement with airplane manufacturer Airbus to reschedule its current order book, pushing back the delivery of 88 aircraft originally due by fiscal year 2030 to fiscal year 2033.

Weekly stock losses likely  

However, the main European indices are on track for weekly losses in what could be the sharpest market drawdown since the turbulence around U.S. tariffs seven months ago.

The German DAX is on course for a weekly loss of just under 1%, the CAC 40 in Paris of almost 2%, while the U.K.’s FTSE 100 is largely flat. 

To be sure, these are modest drops in markets that have run hard for months – both the DAX and the FTSE 100 are up over 19% year-to-date, while the CAC 40 has gained almost 8%. 

German exports rose in September  

As far as economic data are concerned, German exports rose by 1.4% in September compared with the previous month, above the forecast for a 0.5% increase.

British house prices increased by a stronger-than-expected 0.6% in monthly terms in October, figures from mortgage lender Halifax showed earlier Friday.

Halifax said house prices were 1.9% higher than a year earlier compared with an annual increase of 1.3% in September. 

Crude edge higher

Oil prices rose Friday, but were on track for a second consecutive weekly loss on worries about excess supply and slowing U.S. demand. 

Brent futures gained 1.2% to $64.11 a barrel and U.S. West Texas Intermediate crude futures rose 1.3% to $60.20 a barrel.

Both contracts are set to fall about 2% this week, down for a second straight week, after the Organisation of the Petroleum Exporting Countries and its allies, known as OPEC+, decided to increase output slightly in December. 

The group also paused further increases for the first quarter of next year, wary of a supply glut.

Additionally to the concerns, U.S. crude stocks rose more than expected, raising concerns about U.S. demand, particularly as the longest government shutdown in the history of the U.S. continues.