2026.10.0907:08:44UTC+00European Stocks Rebound From Four-Month Lows

European stocks advanced on Friday, with both the STOXX 50 and STOXX 600 rising 0.8% after recently hitting four-month lows, as easing oil prices and lower bond yields improved risk sentiment. Brent crude pulled back from recent highs after US President Donald Trump indicated Washington would not launch an attack on Iran before the November midterm elections, citing productive talks aimed at resolving the conflict. At the same time, robust demand at a US 30-year Treasury auction drove yields lower, signaling that investors remain willing to buy long-dated government debt despite the recent selloff. Optimism around artificial intelligence also improved after reports that OpenAI expects its annualized revenue to reach or surpass $70 billion by year-end, helping to alleviate concerns sparked by earlier indications that revenue was running $20 billion below previously flagged levels. Separately, LSEG IBES data showed that expectations for European third-quarter earnings growth have risen to 21%, up from 19.4% a week earlier, ahead of the upcoming earnings season.