Feb 20 (Reuters) - European shares edged higher on Friday and were on track for weekly gains, buoyed by a broadly improving corporate earnings outlook and easing AI-disruption worries, while simmering geopolitical tensions kept a lid on enthusiasm.
The pan-European STOXX 600 index rose 0.2% to 626.64 points by 0814 GMT, trading just shy of an all-time high, with most regional benchmarks also in the black.
Luxury brand Moncler jumped 13% after reporting a 7% rise in revenue in the fourth quarter, helped
by solid growth in Asia and the Americas. The broader luxury sector added 1.2%.
The personal and household goods sector added 1.3% and led sectoral gains after brokerage Deutsche Bank upgraded European staples to "neutral" from "cautious".
Among laggards, French LNG containment systems specialist GTT lost 3.3% after its annual revenue slightly missed expectations.
The STOXX index was also set to mark its biggest weekly jump since early January as investors were relieved by an overall improving corporate earnings outlook, while concerns that new artificial intelligence models could imminently disrupt traditional businesses temporarily took a back seat.
Meanwhile, global markets were monitoring developments in the oil-rich Middle East as President Donald Trump warned Iran it must make a deal over its nuclear program or "really bad things" will happen.
(Reporting by Johann M Cherian in Bengaluru; Editing by Nivedita Bhattacharjee)
