European Stocks Close Mixed

European stocks closed mixed on Friday, capping off a volatile week as more weakness in the tech sector matched with an uncertain macroeconomic outlook. The Euro STOXX 50 fell 0.3% to 6,267 and the STOXX Europe 600 closed flat at 641. Companies with exposure to the AI trade pared the sharp gains from yesterday as markets continued to gauge whether speculative demand on AI infrastructure will translate to sustainable returns. ASML dropped 2.1%, Siemens Energy fell 2.6%, and Infineon dropped 1.3%, even as the start of trading for SK Hynix in the US brought strong orders. In turn, banks closed higher on another strong session for Eurozone sovereign bonds after oil prices continued to trim gains from the week. BBVA, Deutsche Bank, and UniCredit gained around 1.5% each. The Euro STOXX 50 fell 2.3% and the STOXX Europe 600 fell 1.8% from their records last Friday.

European stocks were slightly higher on Friday, with both the STOXX 50 and the STOXX 600 edging up 0.1%. Investors continued to assess developments in the Middle East, while easing oil prices following their sharp rally earlier in the week provided some relief after reports suggested the US and Iran would continue peace negotiations. Traders were also watching the highly anticipated US market debut of South Korean chipmaker SK Hynix. The technology sector was under pressure, however, with ASML Holding falling 1.9% and Infineon Technologies losing 2.3%. Vodafone surged more than 10% to top the STOXX 600 after UAE-based e& announced it would sell its stake in the telecom company for $5.95 billion. BBVA (+1%), Intesa Sanpaolo (+1%), and Rio Tinto (+1.7%) also posted gains. In contrast, AstraZeneca fell 1.4%, extending its 6.2% decline from the previous session. For the week, the STOXX 50 is down around 2%, while the STOXX 600 has lost approximately 1.8%.

European equity markets were poised for a subdued open on Friday as investors continued to assess developments in the Middle East and their implications for inflation and monetary policy. Reports indicated that the US and Iran will continue peace negotiations despite a recent escalation in hostilities that disrupted energy flows through the Strait of Hormuz and reignited inflation concerns. On Thursday, European stocks ended higher amid a rebound in technology shares. Investors will now focus on final June inflation data from Germany and France, along with May industrial production figures for Italy and Turkey. In premarket trading, Euro Stoxx 50 futures slipped 0.2%, while Stoxx 600 futures were little changed.