FX.co ★ European Stocks Extend Gains

European stocks extended their advance on Friday, with the STOXX 50 up 1.1% and the STOXX 600 rising 0.9%, buoyed by lower oil prices and declining government bond yields. According to Reuters, EU member states discussed a French proposal to release diesel reserves. Brent crude subsequently dropped toward $99 a barrel, helping to ease inflationary pressures and drive sovereign yields lower, including French yields, which had been under strain amid concerns about the country’s political and fiscal outlook.

Technology shares led the gains, while retailers, industrials and chemical companies also moved higher. Among notable movers, ASML Holding climbed 2.4%, Siemens added 1.1% and Inditex advanced 2.2%. Infineon (5.9%), Thyssenkrupp (4.5%) and Stellantis (4.1%) were among the top performers on the STOXX 600, whereas Sanofi was the biggest decliner, slipping 3.2%.

Despite Friday’s rebound, the STOXX 50 is still down 2.0% for the week, and the STOXX 600 has lost 1.9%, putting both indices on track for their weakest weekly performance since April.