European stocks continued their upward momentum on Friday, extending gains after regional indexes touched fresh record highs earlier in the week. The pan-European Stoxx 600 climbed 0.4% by mid-morning in London, following a 0.5% gain on Thursday. This marks the fifth consecutive day of growth for the index, putting it on track to finish the week up more than 2%, driven by investor optimism and strong corporate news.
Major bourses across the continent also saw robust early trading. London’s FTSE 100, which reached an all-time high earlier this week, rose 0.5%, while Switzerland’s SMI gained 0.6% and Italy’s FTSE MIB added 0.5%. Investors are closely watching sector-specific gains, with Austria’s Raiffeisen Bank leading the Stoxx 600 surge, climbing 6.3% after reports that the European Union plans to lift sanctions on a Russian oligarch, compensating the bank for damages related to its Russian operations.
Technology stocks were a significant driver of European market growth this week. The Stoxx Europe 600 Technology index is poised for a weekly gain of 4.9% following a 2.3% jump on Thursday, fueled by investor enthusiasm from OpenAI’s recent share sale, which valued the AI giant at $500 billion. On Friday morning, the tech sector traded mostly flat, suggesting some consolidation after a strong run.
Geopolitical concerns also influenced trading activity. European defense companies welcomed discussions earlier this week in Copenhagen about constructing a “drone wall” to protect against unauthorized Russian airspace incursions. The Stoxx Europe Aerospace & Defense index gained 0.6%, with Italy’s Avio rising 3.5%. Meanwhile, Munich Airport briefly halted flights due to drone sightings, highlighting ongoing regional security risks.
Economic data from Switzerland added another layer to market sentiment. The Swiss Consumer Price Index fell 0.2% in September, led by lower costs for hotels, air travel, and package holidays. Analysts expect the Swiss National Bank to maintain its key interest rate at 0% in December, following last week’s decision to hold rates steady. Across the globe, U.S. markets remained cautious as the government shutdown entered its third day, with Treasury Secretary Scott Bessent warning of potential impacts on America’s economic growth.
source: cnbc