European Stocks Rebound from 3-1/2-Month Low

European equities recovered on Friday after hitting a 3-1/2-month low, as falling government bond yields and cheaper oil helped restore some investor confidence. The STOXX 50 gained more than 1%, while the broader STOXX 600 advanced over 0.5%, although both benchmarks recorded a weekly loss. Global sentiment improved following weaker-than-expected US employment data, which reduced expectations of further Federal Reserve rate increases. Oil prices also retreated after the G7 and partner countries announced plans to release up to 100 million barrels of crude and diesel reserves. Technology stocks led the rebound, with the sector rising more than 2.5%. ASML Holding climbed over 3%. Basic Resources rose around 2%, while industrial goods, telecommunications and construction stocks recorded gains. Utilities and chemicals also moved higher, whereas healthcare, banking and retail shares lagged.

European stocks extended their gains on Friday, with the STOXX 50 rising 1.1% and the STOXX 600 adding 0.9%, supported by lower oil prices and government bond yields. Reuters reported that EU countries discussed a French proposal to release diesel stocks. Brent crude subsequently fell toward $99 a barrel, helping to ease inflationary pressures and push government bond yields lower, including French yields, which had remained under pressure amid concerns over the country’s political and fiscal outlook. Tech stocks posted strong gains, while retailers, industrials and chemical companies also advanced. ASML Holding rose 2.4%, Siemens gained 1.1%, and Inditex added 2.2%. Infineon (5.9%), Thyssenkrupp (4.5%) and Stellantis (4.1%) were among the top performers on the STOXX 600, while Sanofi was the biggest laggard, falling 3.2%. Despite Friday’s gains, the STOXX 50 remains down 2.0% for the week, while the STOXX 600 has fallen 1.9%, on track for their worst weekly performance since April.

European stocks traded higher on Friday, with both the STOXX 50 and STOXX 600 gaining 0.3%, following losses in the previous two sessions. The rebound came as the bond sell-off eased, offering some relief to investors, although French government bonds remained under pressure amid concerns over the country’s fiscal and political outlook. Investors are awaiting Eurozone inflation data later this morning, with headline inflation expected to accelerate to 3.6%. Tech shares booked strong gains and industrials were also higher while the pharmaceutical and banking sectors were among the weakest performers. ASML Holding (1.4%), Schneider Electric (1.5%), Airbus (1.4%), ABB (1.5%) and Infineon (2.5%) were in the green while UniCredit (-2%), Sanofi (-4.4%) and Commerzbank (-2.2%) traded lower. Despite Friday’s gains, the STOXX 50 is down 2% for the week, while the STOXX 600 has fallen 1.9%, putting both indexes on track for their worst weekly performance since April.