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

European markets closed higher on Friday, supported by easing concerns over Middle East tensions and expectations that the Federal Reserve may avoid further tightening. After moving in a narrow range around midday, the pan-European Stoxx 600 finished up 0.68%. The U.S. Labor Department reported that May non-farm payroll employment grew less than expected, helping sentiment that the Fed will not raise interest rates soon. In the UK, the FTSE 100 gained 0.25%, while Germany’s DAX rose 0.78% and France’s CAC 40 advanced 0.39%. Switzerland’s SMI closed 0.5% higher. Germany’s DAX reached a new record high, and France’s CAC 40 climbed to its best level since February 2026. In macro data, S&P Global’s final PMI surveys showed the euro area private sector stabilizing in June, with the composite output index at 50.0.