The pan European Stoxx 600 climbed 0.68% on Friday, as investors responded positively to easing Middle East tensions and softer U.S. jobs data.
European stocks initially struggled for direction before noon before pushing higher into a firm close across most major markets on the continent.
U.S. Labor Department data showed smaller than expected growth in non-farm payroll employment in May, raising hopes the Federal Reserve will hold off on further interest rate hikes.
Germany’s DAX rose 0.78% and hit a new all-time high, while France’s CAC 40 gained 0.39% to reach its best levels since February 2026.
The UK’s FTSE 100 added 0.25% and Switzerland’s SMI closed up 0.5%, contributing to a broadly positive session across European exchanges.
In the UK market, Lion Finance and Weir Group led gains, rising 2.8% and 2.6% respectively, while Rolls-Royce Holdings, Standard Chartered, and Airtel Africa also posted solid advances.
In Germany, E.ON surged nearly 4.5%, with Siemens, Deutsche Bank, Volkswagen, and RWE gaining between 1.3% and 2.7% on the session.
France’s ArcelorMittal climbed nearly 6%, while Edenred rose 3.7% and Veolia Environment and Teleperformance added 2.8% and 2.5% respectively.
Stellantis was a notable decliner in the French market, shedding nearly 4%, with EssilorLuxottica, Kering, and L’Oreal also finishing lower.
Final purchasing managers’ survey results from S&P Global showed the eurozone composite output index registered 50.0 in June, up from 48.5 in May and above the flash estimate of 49.5.
Germany’s composite output index came in at 49.5 in June, above the flash reading of 48.0, though the private sector remained in contraction territory overall.
The German services PMI rose to 48.6 in June from 48.1 in May, marking its highest reading in the current three-month sequence of contraction and well above the initial estimate of 46.8.
French private sector activity improved from May but remained in contraction for the sixth consecutive month, with the composite output index posting 47.2 versus the prior month’s 28-month low of 44.9.
France’s industrial production fell 0.1% on a monthly basis in May, according to data from INSEE, though the decline was smaller than the 0.3% drop economists had forecast.
The S&P Global UK Composite PMI slipped to 49.3 in June from 49.7 in May, marking a second consecutive month of contraction following 11 months of expansion in British private sector activity.
