BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks closed mostly higher on Thursday even as the UK market underperformed and ended slightly weak despite a fine performance by mining and financial sectors.
Despite concerns about the ongoing conflict between the U.S. and Iran, the undertone in the markets remained reasonably firm, with investors looking ahead to corporate earnings updates and economic data in the coming days.
Renewed optimism over artificial intelligence, and U.S. President Donald Trump's comments that the flare-up in tensions in the Middle East will end very quickly aided sentiment.
The U.S. military reportedly attacked Iranian targets for a second straight day and President Donald Trump said the flare-up will end very quickly. U.S. airstrikes hit about 90 targets across Iran as Tehran targeted Gulf states.
Shares from financial, mining, luxury and technology sectors were among the major gainers.
The pan European Stoxx 600 climbed 0.78%. Germany's DAX and France's CAC 40 closed up by 0.89% and 0.9%, respectively. The UK's FTSE 100 settled 0.16% down, while Switzerland's SMI gained 0.29%.
Among other markets in Europe, Austria, Czech Republic, Finland, Netherlands, Spain and Sweden ended notably higher.
Belgium, Denmark, Greece, Iceland, Ireland, Poland and Portugal posted modest gains, while Norway, Russia and Türkiye closed weak.
In the UK market, miners Anglo American Plc, Antofagasta, Glencore and Endeavour Mining gained 4.1%-6%. Rio Tinto moved up 2.85% and Fresnillo closed with a gain of 2.8%.
Standard Chartered climbed 3.4%. HSBC Holdings gained nearly 2.5% and Barclays advanced 2%. Natwest Group and Lloyds Banking Group gained 1.8% and 1.1%, respectively.
Computacenter surged 7.3%. Persimmon, Polar Capital Technology Trust, Smiths Group, Barratt Redrow, Rolls-Royce Holdings, IAG, Tritax Big Box REIT, IMI, 3i Group and Standard Life gained 2%-4%. Kingfisher, Entain, M&G, Burberry Group, Lion Finance, Weir Group, LondonMetric Property and Halma also ended with strong gains.
AstraZeneca shed more than 6% after the group said its nerve disease drug Wainua failed to meet its target in a late-stage trial to reduce cardiovascular-related deaths.
BAE Systems closed 4.4% down. Coca-Cola Europacific Partners, British American Tobacco, Babcock International, BP, Unilever, Croda International, National Grid, Reckitt Benckiser, Experian, Shell, LSEG and IG Group Holdings also ended notably lower.
In the German market, Qiagen zoomed more than 10%. Infineon gained nearly 4.5%, while Zalando, Siemens, Siemens Energy, Deutsche Post and Bayer gained 2.1%-3.4%.
Continental, MTU Aero Engines, Vonovia, Adidas, Commerzbank, Symrise and Allianz also posted strong gains.
Rheinmetall tumbled 5%. Deutsche Boerse, Daimler Truck Holding, Volkswagen, Munich RE, Henkel and Brenntag lost 1%-1.4%.
In the French market, STMicroelectronics surged more than 6%. Hermes International, Societe Generale, Eurofins Scientific, Kering, Schneider Electric, Edenred and Safran gained 2%-3.4%.
ArcelorMittal, Unibail Rodamco, LVMH, BNP Paribas, Sanofi, EssilorLuxottica, Dassault Systemes, Credit Agricole, Engie, Accor and Bouygues also recorded impressive gains.
Thales, Capgemini, Danone, Saint-Gobain, TotalEnergies, Pernod Ricard, Teleperformance and Legrand ended with sharp to moderate losses.
Germany's trade surplus widened to €19.1 billion in May 2026 from an upwardly revised €14.7 billion in April, surpassing expectations of €14.8 billion, marking the largest trade surplus since February, data from the Federal Statistical Office showed.
Germany's exports grew unexpectedly in May largely driven by the surge in shipments to the US, while overall imports dropped for the first time in four months, the data revealed. Exports rose 0.9% in May from the previous month, in contrast to the expected fall of 0.3%. Shipments had increased 0.8% in April.
Meanwhile, imports decreased unexpectedly by 2.5%, reversing a 1.1% rise in April. Economists had forecast a monthly growth of 0.1%.
In economic news, a report from the Royal Institution of Chartered Surveyors said the RICS UK Residential Market Survey showed that the house price balance edged up to -33% in June from -34% in May, pointing to only tentative signs of improvement despite the recent easing in global geopolitical tensions and the decline in oil prices.
Looking ahead, the three-month house price expectations index improved to -32% from -44%, while the 12-month outlook turned slightly more optimistic at +8%, reflecting modest price growth over the coming year.
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