European stock indices closed sharply higher at fresh record highs on Friday, extending the positive momentum in equity markets on the back of favorable economic data and temporary relief from US sanctions. The Eurozone’s STOXX 50 gained 1.1% to reach 6,124, while the pan-European STOXX 600 advanced 0.8% to 630.
Sentiment improved after the US Supreme Court struck down the IEEPA tariffs that President Donald Trump had imposed on the European Union and other countries under the reciprocal tariff scheme. Although the President vowed to reintroduce tariffs through other mechanisms, the prospect of lower trade barriers boosted the earnings outlook for sectors with significant exposure to the US market.
Luxury stocks outperformed, with LVMH climbing 4.5% and Hermès advancing 3.8%. Banks also contributed to the rally, as Intesa Sanpaolo and ING both rose more than 2%. Meanwhile, PMI data signaled stronger-than-expected economic activity in the Eurozone in February, further underpinning risk appetite.
Among individual movers, Air Liquide jumped more than 4% after reporting robust full-year results.
