Global Economy
European Stock Markets Rise on Strong PMI Data and ECB Stability Signals
European equities posted solid gains on Friday as fresh private‑sector PMI readings outperformed expectations, signalling the strongest expansion in the euro area since November. The Euro Stoxx 50 nudged up 0.8% toward a historic high, while the Stoxx Europe 600 added 0.5%. Investor confidence was further buoyed by a reassuring interview with ECB President Christine Lagarde, who confirmed she will see her term through, quelling speculation of an early exit. The data also highlighted a resurgence in German manufacturing, the first growth signal since June 2022, reinforcing the optimism around the euro‑zone’s recovery.
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European Equities Climb on Robust Private‑Sector Data
On Friday, European stock markets posted notable advances, driven by private‑sector purchasing‑manager indices (PMI) that showed stronger‑than‑expected activity across the euro zone. The Euro Stoxx 50 rose by 0.8% to around 6,100 points, hovering close to its all‑time high, while the broader Stoxx Europe 600 added 0.5% to settle at 629 points.
Key Economic Highlights
- PMI data indicated the euro‑area’s private sector expanded at its fastest pace since November.
- Manufacturing output posted its most pronounced increase since August 2025.
- German industrial production recorded growth for the first time since June 2022.
ECB President’s Reassuring Remarks
Investor sentiment received a further boost after Christine Lagarde told the Wall Street Journal that she intends to complete her mandate as President of the European Central Bank, dispelling earlier rumours of an early departure.
The combination of solid PMI numbers and clear central‑bank guidance has helped lift risk appetite, positioning European equities for a potentially stronger finish to the week.