FX.co ★ European Stocks to End May Month Sharply Higher

The STOXX 50 and STOXX 600 indices both experienced an increase of 0.5% on Friday afternoon, positioning them to conclude May with approximately 4% gains—their most notable monthly performance since January. This uptick was primarily driven by advancements in the oil & gas, healthcare, and utilities sectors. Market participants were evaluating new inflation data from the Eurozone's largest economies, noting a decrease in inflation rates in Germany, Italy, and Spain. This trend could provide the European Central Bank (ECB) with additional flexibility to reduce borrowing costs in its forthcoming meeting next week. However, the ongoing uncertainty surrounding the US trade dispute limited further market gains. A federal appeals court temporarily reinstated tariffs imposed by President Donald Trump, following a trade court's prior decision challenging his authority. Meanwhile, US Treasury Secretary Scott Bessent indicated that trade negotiations with China were encountering challenges, describing them as “a bit stalled.” In individual stock movements, SAP (+1.2%), Siemens (+1.6%), and L'Oréal (+1.7%) performed well, while Sanofi lagged behind, with a decline of 4.4%.