European stocks edge up; Stoxx 50 set for weekly loss

European stocks edged higher on Friday, with the Stoxx 50 up 0.4% after five consecutive sessions of losses, as global government bonds stabilized following two days of volatile trading.

A softer US dollar supported gold prices, lifting basic resources stocks to the top of the sectoral gainers.

Among major companies, ASML Holding and Banco Santander advanced more than 1%, while L’Oréal fell over 0.5%.

Investors also assessed fresh economic data from France, where manufacturing activity returned to growth and exceeded expectations, while the services sector contracted more sharply than anticipated.

Oil prices edged lower as markets continued to assess the prolonged US-Iran conflict and its potential impact on energy supplies and inflation.

Despite Friday’s modest recovery, European equities remained on track for a weekly decline, reflecting persistent geopolitical uncertainty, elevated bond yields and concerns over the outlook for monetary policy.