European Stocks Close Mostly Higher

(RTTNews) - European stocks closed higher on Thursday, reacting to the positive developments on the geopolitical front amid easing tensions between Israel and Iran, and on news about NATO increasing its defense spending target from 2% to 5% of GDP over the next ten years.

The pan European Stoxx 600 edged up 0.09%. The U.K.'s FTSE 100 gained 0.19% and Germany's DAX climbed 0.64%, while France's CAC 40 edged down 0.01%. Switzerland's SMI closed flat.

Among other markets in Europe, Belgium, Finland, Greece, Ireland, Poland, Portugal, Russia, Spain and Sweden ended higher.

Czech Republic, Denmark, Iceland, Netherlands, Norway and Turkiye closed weak, while Austria ended flat.

In the UK market, Anglo American Plc climbed nearly 7% after copper prices surged to a three-month high. Antofagasta and Glencore gained about 6% and 5.5%, respectively. Entain closed up 5.2%.

3i Group shares gained about 4.8%. The investment manager said that its majority-owned business, Action, continued to perform "strongly", with like-for-like sales growth of 6.9% in the year to date.

JD Sports Fashion, St. James's Place, Fresnillo, BAE Systems, Howden Joinery, Rio Tinto, Mondi, Kingfisher, Spirax Group, DCC, Associated British Foods, Rentokil Initial, Rolls-Royce Holdings, Vodafone Group and Land Securities gained 1.5 to 4.2%.

Unilever, British American Tobacco, Hikma Pharmaceuticals, HSBC Holdings, Haleon, Experian, Reckitt Benckiser, Informa, Centrica and AstraZeneca closed down 1 to 2.5%.

In the German market, Rheinmetall surged nearly 7%. Qiagen and Puma gained about 2.8% and 2.7%, respectively. Sartorius climbed nearly 2%, while Brenntag, Deutsche Boerse, Infineon, Deutsche Bank, E.ON, Zalando, Merck and Fresenus Medical Care gained 1 to 1.6%.

Adidas ended down 2.5%. Volkswagen and Mercedes-Benz also closed notably lower.

In the French market, Edenred surged more than 6%. Thales, Airbus, STMicroElectronics, Teleperformance, ArcelorMittal, Eurofins Scientific, Safran and Vivendi gained 1.3 to 3%.

Carrefour tumbled nearly 8% after J.P. Morgan placed the stock on its Negative Catalyst Watch list, citing a deteriorating earnings outlook and weak cash flow trends.

The brokerage reaffirmed its "underweight" rating and cut its December 2026 price target to €9 from €10, implying a 30% downside from the June 25 closing price of €12.75.

Essilor lost nearly 3% and Michelin closed 2.3% down. L'Oreal, LVMH, Hermes International, Kering, Dassault Systemes and Stellantis also ended notably lower.

On the economic front, German consumer confidence is set to drop in July after rising for three straight months as rising willingness to save offset the positive impetus provided by improved income prospects.

The forward-looking consumer sentiment index fell unexpectedly to -20.3 in July from -20.0 in the previous month, a survey jointly published by the market research group GfK and the Nuremberg Institute for Market Decisions showed. The score was seen at -19.1.

The savings indicator rose 3.9 points to 13.9 in June, which was the highest level in more than a year.

The survey showed that income expectations remained clearly on track for recovery. The income indicator rose for the fourth straight month in June. The corresponding index gained 2.4 points to 12.8.

The economy is expected to recover in the course of 2025. The economic expectations index surged to 20.1 in June from 13.1 in May. The latest score was the highest since the outbreak of the war in Ukraine in early 2022.