European stock markets advanced on Friday, recovering from sharp losses recorded the previous session. Market analyst Andreas Lipkow of trading house CMC Markets pointed to declining oil prices, which helped ease investor concerns regarding interest rates and inflation, alongside a disappointing US employment report for September that showed significantly fewer job creations than anticipated.
The EuroStoxx 50 gained 1.02 percent to close at 6,238.50 points, following a drop to its lowest level since mid-June on the prior day. Over the week, the index recorded a decline of 1.02 percent. Outside the eurozone, Switzerland's SMI index rose 0.28 percent to 13,660.92 points, while the UK's FTSE 100 added 0.32 percent to reach 10,461.95 points.
Falling crude prices outweighed ongoing inflation figures within the euro area. According to Lipkow, expectations of significantly lower crude price levels drove European markets upward on Friday.
Technology stocks extended the previous day's strength, leading individual sectors with a 2.6 percent gain. The subindex continued its short-term upward trend that began in mid-September, reaching its highest level since September 2000 during the session. Semiconductor equities acted as the primary drivers, as shares of ASML climbed 3.5 percent and STMicroelectronics surged 6.5 percent. Infineon led the EuroStoxx with an 8.8 percent increase following an optimistic assessment from a Jefferies analyst, who noted the company is expected to benefit from rising prices next year.
Among automotive shares, Volvo Car dropped more than seven percent in response to a lowered outlook from the Swedish company, which JPMorgan analysts described as an expected development given challenging conditions. In Zurich, Julius Bär shares gained two percent as the private bank announced plans to repurchase up to 600 million francs in shares. Conversely, shares of British broker IG Group plummeted nearly 23 percent following a disappointing outlook, making it the weakest performer in the FTSE 100.
