European equities finished Friday on a strong note, with broad-based gains across the major indices as traders headed into the weekend.
Sentiment was boosted by a better-than-expected round of S&P Global flash PMI data, which pointed to improving business activity across much of Europe
Germany led the way, with manufacturing accelerating to 52.2 from an expected 50.4, while services also edged higher to 49.6. Across the eurozone, manufacturing rose to 52.0 (vs. 51.5 expected) and services climbed to 51.6 (vs. 49.8 expected), signaling a broader pickup in economic momentum. The UK also surprised to the upside, with manufacturing at 52.8 and services at 51.8, both beating forecasts.
France was the lone soft spot, where manufacturing remained at the neutral level at 50.0, but services remained in contraction at 49.8 (although it was higher than forecast at 47.5). Lower oil prices and hopes that diplomatic efforts could help reduce tensions in the Middle East also supported risk appetite, encouraging buyers to remain in control throughout the session. Friday’s close shows: Germany’s DAX:+1.36% France’s CAC 40:+0.88% UK’s FTSE 100:+0.91% Spain’s IBEX 35:+1.65% Italy’s FTSE MIB:+0.95% For the trading week, with the exception of Italy, the major indices moved higher led by Spain.