European equities advanced on Friday, with the STOXX 50 up 0.7% and the STOXX 600 rising 0.6%, driven by continued strength in the technology sector as investors rotated into AI-related names, following a positive lead from Asian markets. ASML Holding gained more than 2.5%, while Infineon climbed 4.3% and STMicroelectronics added 3.9%.
Luxury stocks also traded firmly higher after strong results from Richemont, whose full-year sales beat expectations and pushed its share price up 2.3%. LVMH rose 1.4%, Hermès advanced 0.7%, and L’Oréal added 0.4%.
Despite the upbeat tone, sentiment remained cautious as the conflict involving Iran continued to cloud the outlook and inject uncertainty into global markets. For the week to date, both the STOXX 50 and the STOXX 600 are up about 2.3%, supported by growing optimism that the US and Iran may eventually reach an agreement to de-escalate tensions, potentially paving the way for the reopening of the Strait of Hormuz.
