FX.co ★ European Stocks Approach Record Highs

European stocks finished sharply higher on Friday, following gains in global equity markets after Iran announced it had reopened the Strait of Hormuz to all commercial shipping. The Eurozone’s STOXX 50 rose 2% to 6,054, while the broader STOXX 600 climbed 1.5% to 626, with both indices reaching their highest levels since their late-February records. The move boosted expectations for a normalization of energy supplies from key regional producers, driving a steep decline in oil and gas prices and easing fears of stagflation in Europe. Bank shares rallied on the prospect of stronger credit conditions and lower interest rates, with Santander and BNP Paribas each advancing more than 4%. Industrial heavyweights also gained on the back of lower power costs, which are expected to support profit margins; Safran, Airbus, and Schneider Electric all added between 4% and 6%.