29.05.202616:08:03UTC+00European Stocks Close Higher

European stocks ended higher on Friday, supported by softer-than-expected inflation data and ongoing optimism over a potential agreement with Iran. The Euro STOXX 50 rose 0.3% to 6,065, while the STOXX Europe 600 edged up 0.2% to 626.5.

Investors continued to monitor the prospects of a deal with Iran, with final approval from US President Trump still pending. Reports indicated that Washington and Tehran had agreed on a memorandum that could restore tanker traffic through the Strait of Hormuz, easing energy prices and pushing down sovereign bond yields over the week.

At the same time, EU-harmonized inflation readings in Germany and France came in below expectations, bolstering expectations that the European Central Bank could deliver multiple rate cuts this year. Banks advanced after a volatile week, with BBVA, UniCredit, and BNP Paribas each gaining around 1.5%.

In the corporate space, SAP climbed 2.4%, tracking a rebound in US software stocks, while AstraZeneca added 1% after securing US approval for a bladder cancer treatment.

Over the week, the Euro STOXX 50 gained 0.6%, and the STOXX Europe 600 inched 0.2% higher.