European stock markets closed with moderate gains. The Stoxx 600 increased by around 0.9%, supported by the publication of corporate results, despite the French fiscal uncertainty.
Technology led the session, rising by nearly 2%, with advances in semiconductors and software standing out. On the other hand, communication services and consumer staples showed weaker performance. Among companies, Carrefour fell by nearly 15% after cutting its annual forecasts due to activity disruptions and the deterioration of the trading environment caused by the unrest in France. Meanwhile, Essilorluxottica surged by 15% after publishing results during the session.
By indices, the IBEX 35 rose by around 1.2% and the DAX in Germany by 1.3%. The Eurostoxx50 climbed by 1.4%, supported by the rebound in technology, industry, and banks that had been penalised in recent days.
Session Highlights
The focus returned to France. The yield on the ten-year bond reached 5%, its highest level since 2002, and the premium over Germany approached 160 basis points. Furthermore, Russian President Vladimir Putin confirmed that he is willing to resume tripartite peace talks with the US and Ukraine.
Fixed Income
Outside the French focus, the main sovereign references recorded more contained movements. In the United States, the auction of $13 billion in twenty-year bonds scheduled for the day remained the next reference to assess the demand for long-term debt.
The yield on the German 10-year Bund stood at around 3.42%, with a rise of 2 basis points compared to the previous close. In the United States, the yield on the 10-year US Treasury hovered around 5.10%, practically flat compared to the previous session's reference.
Commodities and Currencies
Brent remained flat at $108.8 per barrel after surpassing $110 during the morning. The recovery of oil flows from the Gulf countered some of the concerns regarding maritime transport risks in Hormuz.
The euro registered minimal changes against the dollar. The EUR/USD fell by around 0.2%, settling at approximately 1.122.