The STOXX 600 and most major indices closed lower for the week as rising bond yields and oil prices dampened investor sentiment.
European equities ended Friday higher, with the FTSE 100 leading gains at +0.64%, but weekly losses prevailed across most indices. The STOXX 600, DAX, and CAC all posted declines for the week, weighed down by surging bond yields and elevated oil prices.
For the week, the FTSE 100 was the sole gainer at +0.62%, while the DAX fell 1.15% and the CAC dropped 1.76%. Benchmark 10-year yields rose across Europe, with Italy and France seeing the sharpest increases at +9.1 and +8.1 basis points, respectively.
The yield surge reflected inflation concerns, heavy sovereign debt issuance, and expectations of a more hawkish ECB. The USD stabilized after earlier declines, while the AUD and NZD remained stronger.