European equities closed higher on Friday, with the STOXX 50 up 0.6% and the STOXX 600 rising 0.4% to a fresh record, boosted by expectations of further Fed rate cuts next year and fading bets that the ECB will raise borrowing costs in 2026. Broad-based buying lifted heavyweight stocks, with ASML up 1%, Novo Nordisk nearly 2%, and HSBC and AstraZeneca gaining more than 1%. Cyclical and defensive names also advanced, including Rolls-Royce at +2.7%, Prosus at +2.3%, Roche at +2.2%, Iberdrola and Shell both at +1.5%, and Safran at +1.3%. In contrast, sportswear stocks underperformed, with Puma down 1% and Adidas sliding 3% after Nike reported another quarterly margin decline, citing weak demand in China and higher tariffs. Investors also digested the EU’s agreement to issue joint bonds to fund €90 billion in loans to Ukraine. For the week, the STOXX 50 rose 1% and the STOXX 600 gained 1.6%.