16.10.202616:20:20UTC+00European Stocks Close HIgher

European equities finished higher on Friday, supported by gains across all major sectors as investors continued to weigh robust earnings prospects against the persistent threat of elevated inflation. The Euro STOXX 50 advanced 0.6% to 6,204, while the STOXX Europe 600 rose 0.7% to 644, marking its fifth gain in six sessions.

Banks outperformed, closing sharply higher as bond yields held on to the steep declines registered in the previous session, easing borrowing costs for leveraged borrowers. Shares in ING and Deutsche Bank each climbed 1.5%. UniCredit gained 1.4% after the ECB approved an increase in the Italian lender’s stake in Commerzbank, clearing the way for a potential near-term takeover.

AI infrastructure stocks also rebounded, despite continued pressure from a sector-wide selloff in the United States. ASML added 1%, and Siemens Energy rose 2%. Over the week, the Euro STOXX 50 gained 0.4%, while the STOXX Europe 600 advanced 2.0%.