European stocks closed higher on Friday, with several major markets hitting record highs, as investors continued to cheer Chinas stimulus announcements, and bet on hopes of more interest-rate cuts by central banks.
Soft inflation data from France and Spain also helped underpin sentiment.
The pan European Stoxx 600 ended up 0.47%. The U.K.s FTSE 100 climbed 0.43%. Germanys DAX ended higher by 1.22%, and Frances CAC 40 closed up 0.64%. Switzerlands SMI advanced 0.2%.
Among other markets in Europe, Austria, Belgium, Finland, Iceland, Netherlands, Norway, Poland, Portugal, Russia and Spain ended higher.
Denmark, Greece, Sweden and Turkiye closed weak.
In the UK market, Croda International, Smith & Nephew, Frasers Group, Entain, Halma, Sainsbury (J), Spirax Group and IAG gained 2 to 3.3%.
Prudential gained 2.7% on reports the firm is close to finalizing a 15-year partnership with Indonesias largest Islamic lender, PT Bank Syariah Indonesia, in a deal reportedly worth several hundred million dollars. Prudential has also reportedly agreed to acquire full ownership of Prudential Zenith Life Insurance, its joint venture in Nigeria.
Next, Endeavour Mining, Fresnillo, Beazley, SSE and Howden Joinery ended notably lower.
In the German market, Brenntag, Infineon and BASF gained 6.5 to 7%. Siemens Healthineers climbed 5.1%, while Porsche, Bayer, Continental, BMW, Mercedes-Benz, Adidas, Puma, Zalando, Daimler Truck Holding, Qiagen, Volkswagen and Sartorius advanced 2 to 4.5%.
Heidelbergcement, Siemens Energy and MTU Aero Engines lost 1.2 to 1.7%.
In the French market, Kering jumped more than 6%. STMicroElectronics gained about 6%. Stellantis, LVMH, Renault and Edenred gained 3.5 to 4.1%.
Essilor, Teleperformance, Capgemini, Eurofins Scientific, Pernod Ricard, Accor, Carrefour, Vivendi and Air Liquide ended higher by 1 to 2.3%.
Schneider Electric, Safran, Saint Gobain and Publicis Groupe lost 1 to 1.7%.
On the economic front, Frances consumer price inflation eased in September to the lowest level in more than three years amid a fall in energy prices, a provisional estimate from the statistical office INSEE showed. A separate official report showed that producer prices increased for the second straight month in August.
Frances consumer price index climbed 1.2% year-over-year in September, slower than the 1.8% rise in the previous month. Economists had expected inflation to ease to 1.6%. On a monthly basis, consumer prices fell 1.2% in September, reversing a 0.5% rise in August.
EU-harmonised inflation also softened to 1.5% from 2.2% in the prior month. Monthly, the HICP showed a decrease of 1.2%.
In a separate report, the statistical office revealed that industrial producer prices in the home market rose 0.2% month-on-month in August, slightly slower than the 0.3% increase in the previous month. On an annual basis, the decline in producer prices deepened somewhat to 6.3% from 5.7% in July.
Data released earlier in the day showed Germanys Unemployment rate steady at 6% on expected lines. The number of unemployed individuals however rose by 17,000 in September 2024 versus 12,000 that the markets had anticipated.
Data from U.S. Commerce Department said its personal consumption expenditures (PCE) price index inched up by 0.1% in August after rising by 0.2% in July. The uptick matched expectations. The report also said the annual rate of growth by the PCE price index slowed to 2.2% in August from 2.5% in July. Economists had expected the pace of growth to slow to 2.3%.
Meanwhile, the Commerce Department said the annual rate of growth by the core PCE price index accelerated to 2.7% in August from 2.6% in July, in line with estimates.