European stock markets surge: EuroStoxx 50 climbs to record high

Drivers: Iran hopes and risk appetite

Germany's benchmark DAX index in Frankfurt traded 1.91 percent firmer at 24,671 points. Britain's FTSE 100 also ultimately rose 1.63 percent on Friday to 10,471.72 points. Outside the eurozone, the Swiss SMI climbed 1.32 percent to 13,708.02 points after interim peak levels, or temporarily by 1.5 percent to 13,737 points.

Indices at a glance

Banks and luxury stocks led the gainers' lists. The prospect of an economic recovery linked to a possible end of the Iran war provided support. In the EuroStoxx, Deutsche Bank took the top spot with a gain of 6.3 percent. In the European sector overview Stoxx Europe 600, the tech index did not manage to take first place despite notable gains – that position was claimed by the banking index.

Banks, luxury, and aviation lead the field

Luxury stocks Hermes and LVMH each rose by more than 5 percent. The aviation sector also posted significant gains, buoyed by hopes for peace in Iran and falling oil prices. In the EuroStoxx, shares of supplier Safran gained more than 5 percent among the best performers. In the European Stoxx 600 sector overview, the travel and leisure sector recorded the strongest gains before the weekend with a rise of 5 percent, as the hope for peace in the Middle East continued to give the travel and leisure sector further momentum on Friday.

The Dutch payment processor Adyen benefited with a gain of 5.5 percent from the acquisition of the US start-up Orb. Analyst Hannes Leitner of the research firm Jefferies commented: „Damit erhalte der niederländische Zahlungsabwickler Zugriff auf eine Plattform für nutzungsbasierte Abrechnungen. Dahin gehe der Trend - weg vom klassischen Abo-Modell.“ Adyen shares had recently marked a low not seen since 2023.

Adyen with Orb acquisition and SpaceX IPO

The overheated tech sector received tailwind from the renewed risk appetite of investors following the temporary sell-off in recent days. However, since the beginning of the year, only shares of oil and gas as well as commodity companies have outperformed tech stocks. Practically at the close of trading in Europe, SpaceX – the aerospace, satellite, and AI company of Tesla chief Elon Musk – began trading in the US. The first price was $150, around 11 percent above the issue price of $135; the shares later traded even higher at around $166. Pre-market indications had even reached as high as $175.

Oil stocks under pressure

The only sector in negative territory was the oil sector with a decline of 3 percent in light of falling oil prices. TotalEnergies and Eni were at the bottom of the EuroStoxx with losses of up to 4 percent. Trump had most recently complained on his online platform Truth Social about an inaccurate Iranian portrayal of the negotiation results as well as an Iranian drone attack on Indian ships in the Strait of Hormuz, which, however, did not fundamentally impair the negotiation dynamic for the time being.

At the close of trading, the eurozone benchmark index held a gain of 2.16 percent at 6,187.63 points, which – after the broad lethargy of recent days – still earned it a weekly gain of 2.1 percent. The EuroStoxx 50 had already reached a record high of just over 6,200 points early in the session.