FX.co ★ European Stocks Close Sharply Higher

European equities finished sharply higher on Friday, buoyed by strong gains on North American markets and a pullback in bond yields, which together brightened the macroeconomic outlook for corporates. The Eurozone’s STOXX 50 climbed 3% to 6,025, while the pan-European STOXX 600 advanced 1.9% to 626, with both indices testing their highest levels since before the outbreak of the war in Iran at the end of February.

AI infrastructure stocks outperformed as investors continued to assess how much further the sector’s strong rally could run. Nokia jumped 10.6% after unveiling new projects with AMD, Lenovo, and Supermicro, while ASML gained nearly 5%. Banks and industrials also posted solid advances, with Schneider Electric, Airbus, Santander, and UniCredit each rising more than 2%.