European equities advanced on Friday as the pan-European STOXX 600 climbed to a record level and was on track for its biggest weekly gain since mid-May. By 0709 GMT the index was up 0.5% at 651.52 points, reflecting a broader rally that has moved beyond its earlier concentration in technology shares.
Germany's DAX led regional bourses with a 0.9% increase and likewise reached an all-time high. Within the DAX, industrial heavyweight Siemens rose 1.2% and provided the single largest boost to the index after brokerage Kepler Cheuvreux changed its recommendation on the stock from "reduce" to "hold".
Defence stocks advanced 0.8% following reports that Russia carried out its deadliest strike on Ukraine this year. Investors have interpreted heightened geopolitical risk as a catalyst for increased defence spending and higher output, and defence names were among the strongest performers on the week. Other cyclical groups including industrials, banks and financial services also posted notable gains as the market's rally broadened out, a shift supported in part by easing tensions in the Middle East.
Market positioning was further affected by U.S. economic data. A softer-than-expected U.S. jobs report on Thursday reduced market assumptions that the Federal Reserve would delay further rate increases until later in the year. At the same time, global business activity reports generally pointed to a resilient economy, reinforcing investor appetite for cyclically exposed sectors.
On the corporate front, French voucher and benefits company Pluxee jumped 6.4% after reporting a smaller-than-expected decline in organic sales in the third quarter.
Is now the time to buy SIEGn? ProPicks AI evaluates SIEGn every month against thousands of alternatives using 100+ financial metrics. It found Siemens Energy (+231.5%) and Sandisk (+189%) before the crowd did. Could SIEGn be next - or is there a better opportunity in the same space? Don't wait to find out. July Sale - 60% Off InvestingPro