BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks traded sharply higher on Friday, rebounding after two days of losses as oil prices slipped in the wake of comments from U.S. President Donald Trump that the U.S. will not attack Iran before the midterm elections next month and that discussions with Tehran remain productive.
Markets also found some relief from a pullback in French government bond yields, which had previously climbed to multi-decade highs.
Bank of France Governor Emmanuel Moulin said that Eurozone inflationary pressures are '100 percent' driven by energy shocks and that he doesn't see second-round effects.
France must adopt a fiscally prudent budget for 2027 to reassure markets ahead of the upcoming 2027 presidential election, European Economic Commissioner Valdis Domrovskis said at a news conference on Thursday.
The pan-European STOXX 600 surged 0.9 percent to 631.22 after falling 0.8 percent on Thursday.
The German DAX rallied 1 percent, while France's CAC 40 and the U.K.'s FTSE 100 both rose around 0.8 percent.
In corporate news, German sportscar maker Porsche rose 1.5 percent despite announcing it had delivered 16 percent fewer vehicles globally in the first nine months of 2026.
Hexagon AB rallied 3.5 percent. The Swedish industrial technology company said it has signed a deal to acquire Canada's Rocscience for $535 million on a cash-free, debt-free basis.
Swiss specialty chemicals manufacturer Sika advanced 2.7 percent after it acquired British landscaping products maker Azpects Group.
Scandinavian insurance company Tryg surged 3.2 percent after third-quarter pre-tax profit beat analysts' expectations.
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