European markets ended Friday on an upward trajectory, with investor confidence lifted by optimistic corporate earnings reports and stronger-than-anticipated eurozone private sector activity data.

The pan-European Stoxx 600 index concluded the trading session 0.8% higher. Market gains accelerated following a Reuters report indicating that Pakistan is exploring avenues to revive talks between the U.S. and Iran, prompted by a push from China.

SAP SE surged 9.3%, making the largest contribution to the index's rise, after the software company reported cloud business revenue growth that exceeded expectations.

The media and travel & leisure sectors outperformed the broader market, while energy and telecommunications stocks lagged behind.

Data released on Friday showed that the eurozone's private sector activity improved significantly more than forecast in July, recovering to levels not seen since prior to the Iran conflict.

Since hitting a fresh high in early July, European markets have been trading in a narrow range as investors weigh robust corporate earnings outlooks against escalating geopolitical risks. Concurrently, concerns over tariffs have resurfaced after the United States announced it would impose duties of 10% to 12.5% on goods from most major trading partners.