European Stocks Rise, Lower Inflation and Iran Deal Hopes Maintain Sentiment
European stocks closed higher on Friday (May 29th) after lower-than-expected inflation data helped stabilize sentiment, while markets continued to monitor the chances of a deal on Iran. The Euro STOXX 50 rose 0.3% to 6,065, while the STOXX Europe 600 added 0.2% to 626.5.
Market attention remained focused on reports that the US and Iran had agreed on a memorandum that could potentially restore tanker flows through the Strait of Hormuz, although final approval from President Donald Trump is still pending. Expectations of restored energy flows helped suppress energy prices and government bond yields throughout the week, giving riskier assets room to recover.
On the data front, EU-harmonized inflation in Germany and France came in lower than expected, reinforcing speculation about the ECB's policy direction. The banking sector also strengthened after a volatile week, with BBVA, UniCredit, and BNP Paribas each rising around 1.5%.
In individual stocks, SAP jumped 2.4% following a rebound in US software stocks, while AstraZeneca rose 1% after receiving US approval for its bladder cancer therapy. On a weekly basis, the STOXX 50 rose about 0.6%, and the STOXX Europe 600 added about 0.2%. (yds)
Source: Newsmaker.id
