European shares cap strong January with earnings-fuelled gains

European stocks closed higher on Friday, extending a winning streak to seven months. Investors reacted to corporate earnings and news of a US presidential nominee for the Federal Reserve. Banks led gains, with Spanish lender Caixabank seeing a significant rise. Swiss watchmaker Swatch and German sportswear maker Adidas also reported positive results. However, some companies faced weaker-than-expected earnings.

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