European stock markets were broadly higher on Friday after earnings from the U.S. helped to lift the banking sector while the majority of automotive stocks rebounded from Thursday's lows.
The banking sector was the standout performer in Europe, driven by gains at the larger global banks after JPMorgan Chase (JPM - Get Report) in the U.S reported a solid set of results for the fourth quarter thanks to an increase in bond trading activity.
Autos rose as investors shrugged off the emissions charge leveled against Fiat Chrysler (FCAU - Get Report) , with the stock recovering 6% even as the U.K. government signaled it might investigate the car maker and the French government accused Renault (RNSDF) of similar misconduct.
The FTSE 100 closed up 0.62% in London, at 7,337, representing its fourteenth straight day of gains and a new record high. The CAC 40 in France closed 1.20% higher at 4,922 while the DAX in Germany closed up 0.94% at 11,629.
European currencies were broadly flat against the greenback by the time stock markets closed, with sterling trading at 1.2191 and the euro changing hands around 1.0623. Bond markets saw yields rise for the session, with U.K 10-year yields adding 3 basis points to reach 1.45%, the German yield rising 1 basis point to 0.34% and French yields ticking up 2 basis points to 0.81%.
In France the top gainers on the CAC were Societe Generale (SCGLY) and Credit Agricole (CRARY) , both up more than 3%. Renault was the top decliner after it was reported the car firm is under investigation in Paris over the emissions output from its cars and its engine management technology.
Builders merchants and other construction firms were among the top gainers in London after a series of positive trading updates from the sector, while the returns in the banking sector were muted ahead of a planned speech by Prime Minister Theresa May next week.