European stocks rose for a fifth consecutive week, as investors maintained their confidence in the sustained demand for artificial intelligence. Shares of Novo Nordisk A/S surged by 6.5% after UK regulators approved the use of higher dosages of its obesity drug.

The Europe Stoxx 600 index closed largely flat on the day, yet still managed to notch a 0.8% gain for the week. Energy and utilities sectors were the standout performers on Friday, while consumer goods and mining stocks lagged behind.

The luxury goods sector was weighed down by Richemont, after Bank of America downgraded the stock. Analysts indicated that foreign exchange volatility, gold prices, and tariff factors are exerting pressure on its profit margins.

European equities repeatedly hit new highs this week, as investors' persistent optimism regarding potential fiscal stimulus and economic growth overshadowed prevailing geopolitical concerns.

"Europe's growth outlook is improving, driven by German fiscal spending, and even if the pace of growth might be more moderate, European stocks still have room to rise," stated Wolf von Rotber, an equity strategist at Bank J. Safra Sarasin.

Market attention has now shifted to the corporate earnings season. Strategists from Goldman Sachs Group indicated that analysts expect a 1% year-over-year increase in fourth-quarter earnings for the Stoxx Europe 600 index constituents. However, excluding the financial sector, overall profits are projected to decline by 5%.