European Markets Close Higher Note On Easing Geopolitical, Interest Rate Concerns

European markets closed higher on Friday as concerns over Middle East tensions eased and investors grew more confident that the Federal Reserve will not tighten policy soon. Early directionless trading around midday gave way to gains, following U.S. Labor Department data that showed U.S. non-farm payroll growth in May came in smaller than expected. The pan-European Stoxx 600 rose 0.68%. In major markets, the UK’s FTSE 100 added 0.25%, Germany’s DAX climbed 0.78%, and France’s CAC 40 rose 0.39%, with Switzerland’s SMI up 0.5%. The DAX hit a new all-time high, while the CAC 40 reached its best levels since February 2026. Sector moves varied: E.ON surged nearly 4.5% in Germany, and ArcelorMittal rose nearly 6% in France, while Stellantis fell nearly 4%. Economic data from S&P Global showed the euro area private sector stabilized in June, with the composite output index at 50.0 versus 48.5 in May.