European stocks were in the green on Friday, with both the STOXX 50 and the STOXX 600 gaining 0.5% to reach fresh record levels. The advance tracked the upbeat sentiment across Asian markets after China's services PMI data came in above expectations, while a softer-than-expected US jobs report yesterday helped to ease concerns of an imminent rate hike by the Fed. In Europe, Spain's services PMI also surprised to the upside, pointing to solid expansion in the sector but in Italy growth in services rebounded slightly less than anticipated. Technology, industrials, automakers, and utilities led the gains. Shares of Siemens jumped 1.8% after Kepler Cheuvreux upgraded the stock to 'hold' from 'reduce'. ASML Holding (+1.9%), ABB (+1.8%), Airbus (+1.9%), and Iberdrola (+1.3%) also booked strong gains. In contrast, L'Oreal (-2%) and Kering (-1.9%) were among the worst performers. On the week, the STOXX 50 rose 2.3% and the STOXX 600 added 1.9%, the strongest weekly gain in about a month.

The S&P Global Spain Services PMI accelerated to 54.2 in June 2026, well above expectations of 50.9 and rebounding from May's 50.1 to post its strongest growth rate of the year. This expansion was driven by a robust influx of domestic new orders, which outstripped corporate capacities and caused a marked accumulation of backlogs. Though export demand remained flat, it marked the first time in 2026 that international sales avoided a decline. Buoyed by potential resolutions to the Middle East conflict, business sentiment surged to a four-month high, prompting firms to expand recruitment at the fastest pace in three months to extend a 45 month streak of job creation. Rising headcounts elevated wage bills, which alongside high fuel costs, kept operational expenses substantial. However, input price inflation slowed to a four-month low, allowing service providers to moderate their own rate hikes and cool output price inflation to its lowest level since January.

Industrial production in France fell by 0.1% month-on-month in May 2026, beating market expectations of a 0.4% decline, following a 0.3% increase in the previous month. Production contracted more sharply in manufacturing (-1.0% vs. -0.4% in April), weighed down by declines in the manufacture of transport equipment (-2.8% vs. 3.3%) and coke and refined petroleum products (-9.0% vs. 0.6%), while the contraction in machinery and equipment production deepened (-2.3% vs. -0.4%). Additionally, activity declined in mining and quarrying (-0.6% vs. 2.2%), while growth in water supply, sewerage, waste management, and remediation services eased (0.9% vs. 1.0%). In contrast, output rebounded sharply in electricity, gas, steam, and air-conditioning supply (3.4% vs. -1.1%). On an annual basis, industrial production rose 3.2% in May, following an upwardly revised 2.9% increase in the previous month.

The RatingDog China General Services PMI declined to 54.1 in June 2026 from May's three-month high of 54.4. However, the latest reading exceeded market forecasts of 53.0 and pointed to the third-steepest increase in services activity in nearly three years, supported by domestic demand. Meanwhile, new export business expanded for the second consecutive month and at the fastest pace since October 2024. Employment increased for the second consecutive month, marking the first back-to-back increase since 2024 and the fastest rise since July 2024. On the price front, input costs rose due to higher labour, raw material, and transportation costs. However, input cost inflation eased from May's 19-month high. Meanwhile, output cost inflation accelerated for the first time in four months, the highest level in more than two years. Looking ahead, business sentiment remained positive and broadly comparable to that seen in May.

Gold climbed toward $4,200 an ounce on Friday, extending gains from the previous session as weaker-than-expected US jobs data prompted traders to scale back bets on Federal Reserve rate hikes. The US economy added just 57,000 jobs in June, the fewest in four months and well below forecasts of 110,000, while the unemployment rate stood at 4.2%. That followed a report on Wednesday showing private-sector job growth also came in below expectations. Fed funds futures now imply roughly a 50% chance of a September rate hike, down from 67% before the latest employment data. Fed Chair Kevin Warsh also said this week that inflation expectations are moderating while reaffirming the central bank’s commitment to maintaining price stability. Meanwhile, gold drew additional support from lower oil prices and easing inflation concerns as commercial shipping through the Strait of Hormuz continued to recover amid progress in US-Iran talks.

Brent held steady around $72 per barrel on Friday, hovering near levels last seen before the Middle East conflict erupted in late February as commercial shipping through the Strait of Hormuz continued to recover amid progress in US-Iran talks. Saudi Arabia’s crude exports have rebounded to about 90% of their pre-war levels as more tankers successfully transit the key waterway, signaling that regional oil supply is gradually normalizing. The UAE has also restored its oil exports to pre-war levels by routing tankers through the Strait of Hormuz without drawing attention and relying on a pipeline that bypasses the chokepoint. Meanwhile, President Donald Trump said negotiations with Iran were progressing well after mediators from Qatar and Pakistan held separate meetings with US and Iranian officials in Doha on Wednesday.