European Stocks Close On Firm Note On Trade Deal Optimism, Earnings

(RTTNews) - European stocks closed higher on Friday amid optimism about the U.S. and China agreeing on a trade deal this weekend, close on the heels of U.S. President Donald Trump unveiling the framework of a trade agreement with the U.K. on Thursday.

Trump said on Thursday that the meetings with China on trade and economic issues could be "very substantive" and lead to tariff reductions.

U.S. Commerce Secretary Howard Lutnick told CNBC that dozens of trade deals will be rolled over the next month, but a 10% tariff imposed on most countries will likely stay.

The pan European Stoxx 600 climbed 0.44%. Germany's DAX, which rose to a record high, gained 0.56%. The U.K.'s FTSE 100 and France's CAC 40 closed up 0.46% and 0.7%, respectively. Switzerland's SMI ended 0.21% up.

Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Greece, Iceland, Ireland, Netherlands, Poland, Russia, Spain and Turkiye closed higher.

Norway and Portugal ended weak, while Sweden closed flat.

In the UK market, BP, Airtel Africa and Associated British Foods gained 4 to 4.8%. Fresnillo, Kingfisher, JD Sports Fashion, Endeavour Mining, Mondi, Haleon, BT Group and Phoenix Group Holdings climbed 1.5 to 3%.

IAG gained nearly 2.5%. IAG reported operating earnings of €198 million for the three months to March 31, compared to €68 million a year earlier and a consensus of €158 million from analyst estimates compiled by the company.

IAG also announced that it has ordered up to 76 new Boeing and Airbus aircraft.

BAE Systems and British American Tobacco closed lower by 3.3% and 3.2%, respectively. RightMove, Babcock International, Imperial Brands, Intercontinental Hotels Group, Taylor Wimpey, EasyJet and Marks & Spencer lost 1 to 2.4%.

In Germany, Commerzbank gained about 4.5% after the lender reported higher profit in its first quarter, despite weak net interest income. Further, the company confirmed its fiscal 2025 outlook for net result, and adjusted net interest income view.

In the first quarter, consolidated net result increased 11.7% to 834 million euros from last year's 747 million euros. The company said it is the best quarterly result since the first quarter of 2011.

Bayer and Daimler Truck Holding climbed 2.7% and 2.5%, respectively. Siemens Energy, Deutsche Bank, BMW, Merck, Brenntag, Infineon, Deutsche Telekom, Siemens Healthineers and Vonovia gained 1 to 2%.

Puma ended more than 5% down. Allianz drifted down by about 2.7%, while Qiagen and MTU Aero Engines ended lower by 1.1% and 1%, respectively.

In the French market, STMicroElectronics rallied more than 5%. Capgemini gained about 3.3%, while Renault, L'Oreal, LVMH, TotalEnergies, Edenred, Publicis Groupe, Teleperformance, Kering, Sanofi, AXA, Dassault Systemes and Unibail Rodamco climbed 1 to 2.2%.

Thales ended lower by nearly 3%. Safraon, Essilor and Accor closed moderately lower.