European markets close higher as interest rate concerns ease

European stocks closed higher on Friday as concerns about tensions in the Middle East eased and investors looked to the Federal Reserve for clues on interest rates. The session followed data from the U.S. Labor Department showing U.S. non-farm payroll growth in May was smaller than expected, which boosted hopes the Fed may delay hikes. The pan-European Stoxx 600 rose 0.68%. In major markets, the UK’s FTSE 100 gained 0.25%, Germany’s DAX advanced 0.78%, and France’s CAC 40 added 0.39%, with Switzerland’s SMI finishing up 0.5%. The DAX reached a new all-time high, while the CAC 40 logged its best level since February 2026. Among company moves, Germany’s E.ON surged nearly 4.5%, while France’s ArcelorMittal rose nearly 6% and Stellantis fell almost 4%. Economic indicators from S&P Global showed the euro area private sector stabilized in June, with the composite output index at 50 versus 48.5 in May.