European stocks close sharply higher as autos, banks and luxury lead
Euro STOXX 50 gained 1% to 6,492 and STOXX Europe 600 rose 0.6% to 655 at their highest in nearly two weeks. Volkswagen, Mercedes-Benz and BMW rose 3%-4%; BNP Paribas added 2%.
European stocks closed sharply higher on Friday, recovering from losses in the previous session with support from auto manufacturers, luxury brands, and heavyweight banks.
The Euro STOXX 50 gained 1% to 6,492 and the STOXX Europe 600 rose 0.6% to 655, both at their highest in nearly two weeks.
Volkswagen, Mercedes-Benz, and BMW jumped between 4% and 3%, ending a volatile week on a positive note as markets continued to assess how the sector is exposed to US tariffs on Mexico and Canada, in addition to benefits from higher industrial profits in China.
Strong Chinese economic data also supported luxury brands, with LVMH, Hermes, and Ferrari adding more than 2%.
Meanwhile, European banks rose sharply after Fed Chairman Warsh struck a more hawkish tone than previous communication and flattened the global yield curves.
BNP Paribas added 2% while UniCredit and BBVA gained 1.5%.
Expectations of a rate hike by the ECB were consolidated after the release of higher inflation in France and Spain.