FRANKFURT: European shares rounded off their fifth week of gains on Friday, as trade deals out of the US eased tariff worries and strong corporate results provided further boost.
The region-wide STOXX 600 index closed up 0.4%. Most local bourses were also higher, with Germany’s hovering near a record high.
Luxury group Richemont rose almost 7% after reporting a slightly stronger-than-expected 7% rise in quarterly sales. It lifted the personal and household goods sector 1.2%, while the luxury index rose 2.2%.
Earnings in the region have shown resilience, with first-quarter earnings now expected to increase more than previously thought, LSEG data showed earlier in the week.
Heavyweight healthcare shares were the biggest boosts, jumping 1.2%, boosted by AstraZeneca and Novartis.
Declines in basic resource miners and technology stocks limited gains on the benchmark index.
For the week, the European benchmark index rose about 2%, driven by a deal between Washington and Beijing to lower tariffs on each other.
A week ago, Trump and British Prime Minister Keir Starmer agreed on a limited bilateral trade agreement, making way for conversations that a deal with the European Union is also around the corner.
The region was closely monitoring developments from the Russia-Ukraine peace talks, after the first direct talks in more than three years between the two warring countries yielded no ceasefire.
On the data front, French unemployment rate came at 7.1% for the first quarter.
Italian EU-harmonised consumer prices rose 2% year-on-year in April, revising down preliminary data. The preliminary estimate had pointed to a 2.1% year-on-year rise.
European Central Bank policymaker Martins Kazaks said interest rates may be at their lowest point, but higher uncertainty and sudden changes could alter the policy outlook.
Among other stocks, Novo Nordisk fell 1.8%. The drugmaker ousted CEO Lars Fruergaard Jorgensen on concerns the company is losing its first-mover advantage in the obesity drug market.
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