European Stocks Inch Down from Record

European stock indices inched down from their record levels on Friday as the pullback in sovereign yields was halted. The Euro STOXX 50 eased 0.3% to 6,302 and the STOXX Europe 600 dropped 0.2% to 636. Iran delayed the start of talks over its nuclear program and war with the US to halt a streak of de-escalation between both countries that lowered energy prices and propped European equities to a rally this week. Still, plans to restore trade through the Strait of Hormuz progressed with reports that tankers flowed through the chokepoint. Luxury brands closed lower with LVMH, Hermes, and Ferrari dropping between 2.5% and 2.3%. Tech was also lower with ASML and Prosus dropping 1% and 2.2%, respectively. German auto producers rebounded slightly following the guidance decrease from BMW this week, although Volkswagen dropped 4.5% as it was detached from its dividend. On the week, the Euro STOXX 50 gained 1.9% and the STOXX Europe 600 rose 0.4%.

Stocks in Europe were cautious on Friday, with both the STOXX 50 and STOXX 600 down 0.1%, putting them on track to close the session in the red, and pausing a six-day winning streak. Sentiment weakened after renewed geopolitical concerns in the Middle East, following the cancellation of scheduled US–Iran talks in Geneva. The development raised doubts about the prospects for a peace agreement and the reopening of the Strait of Hormuz, helping to push oil prices slightly higher. Among individual movers, ASML Holding fell 1.1% after Bloomberg reported that US officials are investigating whether one of the company’s chipmaking machines may have been transferred to China, potentially breaching US-led export restrictions. L’Oréal declined 2.9%, while Hermès dropped 1.8%. On the other hand, energy and healthcare stocks outperformed. Novo Nordisk surged nearly 5% after several analysts upgraded the stock. For the week, the STOXX 50 is up 2.1%, while the STOXX 600 has gained 0.6%.

European stocks were mixed on Friday, with the STOXX 50 rising 0.4% while the STOXX 600 hovered around the flatline, as a six-session rally apparently eased. Investors remained focused on geopolitical developments after US-Iran talks scheduled for today in Geneva were called off. The news raised questions about prospects for a peace agreement and the reopening of the Strait of Hormuz, helping push oil prices modestly higher. Energy and defense stocks outperformed while miners and utilities lagged. Novartis and AstraZeneca rose 1.1% and 1.5%, respectively. Luxury group LVMH advanced 1.6%, while oil majors TotalEnergies and BP gained 1.0% and 1.4%. On the downside, shares of ASML Holding fell 1.7% after Bloomberg reported that US officials are concerned one of the company's chipmaking machines may have been transferred to China, potentially violating US-led export restrictions. For the week, the STOXX 50 has gained 2.1%, while the STOXX 600 is up 0.6%.