European Stocks Close HIgher

European stocks closed higher on Friday with broad support from all major sectors as markets continued to gauge positive earnings prospects against risks of high inflation. The Euro STOXX 50 added 0.6% to 6,204 and the STOXX Europe 600 rose for a fifth session in six, gaining 0.7% to 644. Banks closed sharply higher as bond yields held their sharp declines from the previous session, easing borrowing costs for debtors. ING and Deutsche Bank rose 1.5%. Also, UniCredit jumped 1.4% as the ECB approved an increase in the Italian lender's stake in Commerzbank, paving the way for an imminent takeover. Meanwhile, AI infrastructure stocks rebounded despite further pressure from the sector's selloff in the US, with ASML adding 1% and Siemens Energy jumping 2%. The Euro STOXX 50 added 0.4% and the STOXX Europe 600 jumped 2.0% on the week.

European stocks rose on Friday, with the STOXX 50 gaining 0.6% and the STOXX 600 advancing 0.3% to trade near two-week highs, as concerns over AI spending amid a high-interest-rate environment eased and the previous session’s tech sell-off subsided. The technology sector rebounded into positive territory following losses in the previous session. ASML Holding added 2.1%. Traders were also keeping a close eye on fresh corporate updates. Airbus (0.6%), Siemens Energy (1.1%) and Rheinmetall (3.3%) were higher and the banking sector was among the biggest gainers, including ING (1.7%) and Intesa Sanpaolo (0.8%). In contrast, LVMH (-1.1%), Novartis (-1%), and AstraZeneca (-1.5%) were in the red. Schneider Electric fell 1.1% although the company raised its 2026 core profit and revenue targets. For the week, the STOXX 50 was down 0.9%, while the STOXX 600 gained 1.4%, putting the latter on track for its strongest weekly advance since August.

European equity markets were poised to open higher on Friday as the recent selloff in global technology stocks subsided, while investors continued to evaluate the outlook for the artificial intelligence sector. Market sentiment also improved after Federal Reserve Chair Kevin Warsh refrained from signaling an imminent interest rate hike despite hotter-than-expected US inflation data. In Europe, investors will focus on final September inflation figures for the Eurozone and Italy, alongside August trade data for the Eurozone. Automakers may also attract attention following reports that the European Union is considering a new trade instrument to counter economic pressure from China, supplementing existing tariffs and trade restrictions. In premarket trading, Euro Stoxx 50 futures rose 0.7%, while Stoxx 600 futures advanced 0.4%.