European stocks on Friday moved toward their best week in more than four months, with French retailer Carrefour adding to a batch of better-than-expected profit reports that have helped push regional equities to a six-week high.

What markets are doing

The Stoxx Europe 600 index SXXP, +0.38% was up 0.3% to 391.99, on course for its highest close since June 14, FactSet data show. All sectors rose, topped by the telecom and utility groups.

For the week, the pan-European benchmark was poised to rise 1.6%, and that would be its strongest weekly performance since March 9 when the index surged 3.1%.

Germany’s DAX 30 index DAX, +0.47% rose 0.5% to 12,874.62, and France’s CAC 40 index PX1, +0.32% rose 0.3% to 5,495.64, lagging a bit behind other indexes after French second-quarter GDP growth of 0.1% missed expectations.

Spain’s IBEX 35 IBEX, +0.96% jumped 0.9% to 9,866.00, and the U.K.’s FTSE 100 index UKX, +0.43% moved up 0.6% to 7,706.92.

The euro EURUSD, -0.1202% fell to $1.1627, from $1.1644 late Thursday in New York.

What’s driving the market

European stocks as a whole were building on Thursday’s climb that took German stocks to a five-week high. Those moves came after European Commission President Jean-Claude Juncker and U.S. President Donald Trump said they will work on tamping down trade-related tensions between the U.S. the European Union. The two said they’ll move toward “zero tariffs” and “zero subsidies on non-auto industrial goods,” among other actions.

Investors on Friday sorted through a new batch of earnings reports that included stronger-than-expected operating profit at French supermarket retailer Carrefour SA. Its report spurred the strongest rally in the company’s shares since February 1999, according to FactSet data.

The busy week of earnings reports and developments on the trade front will be capped by the first reading of second-quarter GDP for the U.S. That report from the world’s largest economy is in focus as it may show strong expansion of 4.2%, and a print above that would be the best since 2003.

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And check out: Euro traders looking to Friday’s U.S. GDP numbers as a potential driver

What are strategists saying?

“With around 40% of market cap having reported second-quarter results, European [per-share earnings] growth has accelerated to 6% year-on-year, up from 0% in Q1,” said Tom Pearce, European equity strategist at UBS, in a note published Friday.

“This is in line with the consensus expectations for the companies that have reported, which is a good result, given that the sharp deterioration in euro area growth momentum in Q2 pointed to the risk of a downside surprise. The breadth of surprises has been weak, however, with the gross beat ratio, at 44%, the lowest in at least eight years,” said Pearce.

Stock movers

Carrefour shares CA, +11.40% rallied 11% as the French supermarket retailer said it’s first-half operating profit came in at €597 million, ahead of the €538.7 million expected in a FactSet consensus survey. The company, which has been engaged in a reorganization plan, said it plans to reach its targets for 2020 and 2022.

SBM Offshore NV SBMO, +9.64% leapt 9.6% after the Dutch oil-and-gas services company reached a leniency agreement with Brazilian authorities and the state oil company, Petrobras Petroleo Brasileiro S/A PETR3, -2.52% PBR, -3.01% SBM last year signed a deferred prosecution agreement with U.S. authorities, agreeing to settle charges of bribing officials in five countries, including Brazil.

Kering shares KER, -6.56% dropped 7.1% as revenue as the company behind fashion houses Gucci and Bottega Veneta posted first-half revenue €6.43 billion, short of the €7.01 billion expected in a FactSet survey of analysts. Net profit climbed to €2.36 billion euros ($2.76 billion) from €825.8 million a year ago.

Reckitt Benckiser Group PLC shares RB., +8.75% surged 6.6% after the maker of Clearasil, Vanish and other consumer-goods brands posted a 9.5% rise in first-half pretax profit and raised its revenue-growth target.

Banco de Sabadell SA SAB, -4.26% fell 3.4%, with the Spanish lender swinging to a second-quarter loss of €138.7 million, hurt by costs at its U.K. subsidiary TSB Bank following a technology-platform migration.

BHP Billiton Ltd. hares BLT, +3.13% BHP, -1.03% climbed 3.3% after the company reached a deal to sell the bulk of its U.S. onshore oil-and-gas unit for $10.5 billion to BP, allowing the world’s largest miner by revenue to exit what’s been a costly investment. BP shares turned higher, rising 0.1%.

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