Europe: Stocks Close at Records.

European stocks rose to new records on Friday amid an improving macroeconomic backdrop for equities and a bounce for companies with exposure to the speculative AI trade. The Euro STOXX 50 closed 0.9% higher at 6,417 and the STOXX Europe 600 rose 0.7% to 653. A session of thinner trading due to the holiday in the US put the spotlight on the tech sector, trimming its losses from a volatile week as investors reconsidered risks that chip producers and AI hyperscalers are overbought. ASML rose 3.7%, tracking Asian counterparts, and Infineon gained 1.2%. Meanwhile, companies with participation in data center operation gained with Siemens adding 2.5%and Schneider gaining 1.5%, while utilities Iberdrola and Enel rose 1.5%. While sovereign yields remained higher in the long end, lower yields for shorter maturities supported banks with BBVA and Deutsche Bank adding 1%. Gains consolidated as a soft jobs report in the US and inflation report in the Eurozone trimmed rate cut bets by central banks.