European stocks extended early gains on Friday amid signs of easing geopolitical tensions that have recently weighed on global equities. The Eurozone’s STOXX 50 climbed 0.8% toward the 5,950 mark, while the pan-European STOXX 600 advanced 0.7% to move above 617.
Ukrainian officials signaled renewed optimism over negotiations with Russia, raising hopes for a possible path to ending the war. At the same time, US President Trump adopted a less confrontational tone toward Iran, and satellite data indicated a group of vessels transiting the Strait of Hormuz. These developments improved the outlook for Europe’s energy supply, which had been at risk due to disruptions to both oil and gas flows from the two conflicts.
Banks rallied strongly despite the rebound in bond yields, with Santander, UniCredit, and BBVA each gaining close to 2%. Lower natural gas prices also supported major industrials, with Schneider and Siemens rising about 2%.
For the week, the STOXX 50 was on track to rise 4.5%, bolstered by a 5% jump on Wednesday after the US President’s threats against Iran ultimately failed to materialize.
