FX.co ★ European Stocks Close at Records

European stocks climbed to fresh record highs on Friday, supported by an improving macroeconomic backdrop for equities and a rebound in companies tied to the speculative AI trade. The Euro STOXX 50 advanced 0.9% to close at 6,417, while the STOXX Europe 600 gained 0.7% to finish at 653.

With US markets shut for a holiday, thinner trading volumes in Europe put the spotlight on the technology sector. The group pared some of its losses from a volatile week as investors reassessed concerns that chipmakers and AI hyperscalers had become overbought. ASML climbed 3.7%, mirroring gains in Asian peers, and Infineon added 1.2%.

Data center–linked companies also advanced, with Siemens rising 2.5% and Schneider Electric up 1.5%. Utilities benefited as well, with Iberdrola and Enel each gaining 1.5%.

While long-dated sovereign yields remained elevated, lower yields at the short end of the curve supported bank stocks: BBVA and Deutsche Bank both gained around 1%. Market gains held as a softer US jobs report and the latest Eurozone inflation data reduced expectations for imminent interest-rate cuts by major central banks.