European Markets Rise on US-China Trade Optimism and Strong Earnings
European shares advanced on Friday, supported by signs of easing U.S.-China trade tensions and a series of upbeat corporate earnings that lifted investor confidence.
The STOXX 600 index climbed 0.3% to 576.01 points as of 07:09 GMT, after closing at a record high in the previous session. Gains were led by energy stocks, which remained buoyant following new U.S. sanctions on major Russian suppliers amid the country’s ongoing war in Ukraine.
Trade Optimism Boosts Market Mood
Investor sentiment improved after the White House confirmed that President Donald Trump will meet Chinese President Xi Jinping next week. The talks come ahead of a potential 100% tariff hike on Chinese imports, raising hopes that negotiations may ease trade tensions between the two largest economies.
Sector Performance Mixed
Technology and financial stocks led the gains, each rising 0.8%, while utilities edged 0.3% lower.
Meanwhile, UK retail sales surprised to the upside, climbing 0.5% in September — the fourth straight monthly increase — providing further support to European market sentiment.
Investors Await US Inflation Data
Market participants also awaited the release of U.S. consumer price index (CPI) data later in the day, which is expected to guide expectations ahead of next week’s Federal Reserve policy meeting.
Corporate Updates Lift Individual Stocks
In earnings news, Sanofi jumped 3.3% after the French pharmaceutical giant posted stronger-than-expected third-quarter profits.
Sweden’s Saab surged nearly 6% after raising its sales outlook, supported by rising global defense spending.
NatWest Group also gained 4.4%, reporting a 30% increase in third-quarter profit and upgrading its annual performance targets.
Overall, markets remained buoyant as investors balanced optimism over trade progress with anticipation of key U.S. inflation data.
