(Reuters) – European stocks rose on Friday as easing bond yields provided relief to investors, while better-than-expected economic data supported sentiment.
The pan-European STOXX 600 index rose 0.2% by 0843 GMT, on course for its sixth straight week of gains.
The German DAX rose 0.5%, trading just below all-time highs, after data showed the country’s economy grew significantly more in the first quarter than previously estimated.
“The Dax has been a bright spot in global markets this year as investors lock on to a region where the government plans to boost spending on infrastructure and defence, as well as German equities offering value relative to the US market,” said Russ Mould, investment director at AJ Bell.
Stock markets came under pressure earlier this week as surging U.S. Treasury yields stoked concerns over mounting U.S. debt, while May business surveys signalled weakness in the euro zone economy.
Still, the STOXX 600 has recovered from the early April slump as U.S. President Donald Trump pause some of his hefty tariffs on trading partners and earnings reports come in stronger than expected.
The benchmark 10-year U.S. and European government bond yields eased on Friday after surging earlier this week as the Republican-controlled U.S. House of Representatives passed a sweeping tax and spending bill.
The UK’s blue-chip FTSE 100 rose 0.4% after data showed retail sales jumped more than expected in April.
Among single stocks, British investment platform AJ Bell jumped 6.9% after it posted a 12% year-over-year rise in half-yearly profit before tax, benefitting from increased client activity.
Michelin rose 0.8% after Jefferies upgraded the French tyre maker to “buy,” citing growth potential in earnings.
Games Workshop slipped 3.8% after Peel Hunt downgraded the miniature wargames maker, saying it expects U.S. tariffs to cost around 10 million pounds.
(Reporting by Sruthi Shankar in Bengaluru; Editing by Nivedita Bhattacharjee and Mrigank Dhaniwala)
