European stocks moved higher on Friday, supported by a combination of better-than-expected corporate earnings and stronger business activity across the euro zone. The gains pointed to improving market sentiment as investors reacted to signs that both companies and the regional economy were holding up well.

Upbeat earnings helped set the tone for the session, giving investors fresh reasons to buy into European equities. Positive company updates often improve confidence in profit outlooks, and that appeared to add momentum to the broader market.

Economic data also played an important role. Stronger-than-expected business activity in the euro zone suggested that underlying demand and operating conditions were more resilient than some investors had anticipated. That helped reinforce the view that the regional economy may be performing better than feared.

Together, the earnings news and economic readings gave European markets a lift at the end of the week. The move highlighted how closely traders are balancing company performance with macroeconomic signals when assessing the near-term direction for European stocks.