FX.co ★ European Stocks Close Sharply Higher

European stocks experienced a significant uptick on Friday, aligning with a global rally in equities, as indications emerged that the United States might implement milder tariffs than initially anticipated. The Eurozone's STOXX 50 surged by 1.5%, closing at 5,320, while the pan-European STOXX 600 increased by 1.1%, ending the session at 543. A breakthrough in US-China trade negotiations saw both nations commit to a deal, circumventing the aggressive tariffs that had been threatening their economies, reflecting a softer tone from certain US policymakers on the issue of tariffs. Concurrently, EU leaders engaged in discussions aimed at resolving past trade conflicts with the US. Furthermore, while harmonized inflation rates in France and Spain exceeded forecasts—rising to 0.8% and 2.2% respectively—they remained sufficiently low to support the European Central Bank's trajectory of continued interest rate cuts. The stock market rally was broad-based across all sectors, with substantial gains in the industrial segment. Notably, Siemens and Schneider saw their shares rise by 6.5% and 3.6% respectively, while leading car manufacturers BMW, Mercedes Benz, and Stellantis each increased by over 4.5%, spearheading the advance among automotive companies.