European equities rebounded on Friday from a three-and-a-half-month low, as declining government bond yields and lower oil prices helped restore investor confidence. The STOXX 50 rose more than 1%, and the broader STOXX 600 gained over 0.5%, though both indices still ended the week in negative territory.
Global risk appetite improved after weaker-than-expected US employment figures tempered expectations of further interest rate hikes by the Federal Reserve. At the same time, oil prices fell following an announcement by the G7 and partner countries that they plan to release up to 100 million barrels of crude and diesel from strategic reserves.
Technology shares led the recovery, with the sector advancing more than 2.5% and ASML Holding adding over 3%. Basic resources stocks climbed around 2%, and industrial goods, telecommunications, and construction names also posted gains. Utilities and chemicals moved higher as well, while healthcare, banking, and retail shares underperformed the broader market.
