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Investing.com - European stocks rose Friday, ending the week on an optimistic note after weathering a few weeks of heightened Middle East tensions and uncertainties over tariffs.
At 04:10 ET (07:10 GMT), the DAX index in Germany gained 0.8%, the CAC 40 in France climbed 0.9% and the FTSE 100 in the U.K. rose 0.2%.
Global sentiment on the rise
Global sentiment appears to be on the rise, boosted by the ceasefire between Israel and Iran, brokered by U.S. President Trump earlier in the week, appearing to hold.
Additionally, trade tensions between China and the U.S., the two largest economies in the world, showed tentative signs of further easing.
In an interview with Bloomberg Television on Thursday, U.S. Commerce Secretary Howard Lutnick said that the two countries have finalized a trade understanding that was initially reached in Geneva last month, although he did not provide specific details about the contents of the agreement.
Lutnick also reiterated that the U.S. is close to finalizing a trade deal with India, another significant economy.
The European Union is also considering cutting tariffs on a range of U.S. imports in a bid to strike a swift trade agreement with President Donald Trump, according to the Wall Street Journal.
Trump’s July 9 deadline for reaching new trade deals is rapidly approaching, although the White House appears to be rowing back on its significant with press secretary Karoline Leavitt saying on Thursday that "the deadline is not critical” .
Core PCE due later
Also boosting optimism was rising expectations for more rate cuts by the Federal Reserve, with the prospect of a more dovish Fed chair on the horizon and continued weak U.S. economic data.
Fed Chair Jerome Powell reiterated that interest rate cuts would wait until the inflationary impact of tariffs is clarified, but this has resulted in more criticism from President Trump, who said he plans to announce a replacement for Powell, whose term ends in May 2026.
The core PCE price index in the U.S., the Fed’s favorite inflation gauge, is due later in the session, and this could offer additional clues on the Federal Reserve’s rate trajectory.
Back in Europe, French consumer prices rose slightly more than expected, posting an annual rise of 0.9%, above the 0.7% predicted, while Spanish inflation also gained 2.2% on the year, above the 2.0% expected.
Akzo Nobel (OTC:AKZOY) to sell Indian unit
In the corporate sector, Akzo Nobel (AS:AKZO) announced Friday it will sell its stake in an Indian unit to conglomerate JSW Group for about €1.4 billion, and the Dutch paints and coating giant will deploy part of the proceeds towards a buyback.
Unilever (LON:ULVR) is paying $1.5 billion to buy men’s personal care brand Dr Squatch from private equity firm Summit Partners, the Financial Times reported.
Crude set for hefty weekly loss
Crude prices edged higher Friday, but are on track for their steepest weekly falls for over two years as the Israel-Iran ceasefire saw traders remove a hefty risk premium from the market.
At 04:10 ET, Brent futures climbed 0.7% to $67.17 a barrel and U.S. West Texas Intermediate crude futures rose 0.8% to $65.76 a barrel.
Both benchmarks are on course for weekly losses of around 12%, heading for their steepest weekly decline since March 2023, and are now back at the levels they were at before the conflict between Israel and Iran began.
Small gains in prices later in the week resulted from U.S. government data showing crude oil and fuel inventories fell a week earlier, pointing to resilient demand in the world’s largest economy.