European stocks declined on Friday, with the STOXX 50 down 1.1% and the STOXX 600 falling 0.8%, ending a two-session winning streak as investors shifted their focus back to inflation risks and the prospect of higher interest rates. Geopolitical tensions in the Middle East continued to escalate. Iran reported that around 30 ships were transiting the Strait, though traffic remains significantly below normal pre-conflict levels. At the same time, US President Trump signaled a harder line on Tehran, stating he would no longer be patient with Iran and urging the country to reach an agreement with Washington.
Among major movers, ASML Holding slid about 3%, HSBC declined 1.1%, and Siemens lost 2%. Mining stocks were among the weakest performers: Fresnillo plunged 5.6%, Antofagasta dropped 5.5%, and Infineon also fell 5.5%, making all three some of the biggest laggards on the STOXX 600. Despite Friday’s setback, European equities finished the week higher overall, with the STOXX 50 advancing 0.3% and the STOXX 600 gaining 0.6%.