European Stocks Close Higher On Strong UK Retail Sales Data, Rate Cut Hopes

European stocks closed higher on Friday, extending recent gains, with investors cheering UK retail sales data and some encouraging corporate earnings updates. Optimism about interest rate cuts by several central banks sometime in the second half of the current year contributed as well to the positive mood in the region.

The pan European Stoxx 600 climbed 0.62%. The U.K.’s FTSE 100 surged 1.5%, Germany’s DAX and France’s CAC 40 gained 0.42% and 0.32%, respectively. Switzerland’s SMI gained 0.23%.

Among other markets in Europe, Austria, Denmark, Finland, Netherlands, Norway, Poland, Portugal and Sweden closed higher.

Belgium, Greece and Turkiye edged up marginally. Iceland, Russia and Spain closed weak.

In the UK market, Natwest Group shares zoomed nearly 7.5% as the bank announced its biggest annual profit last year since the 2007 financial crisis.

Antofagasta surged 6%. Lloyds Banking, Weir, Rio Tinto, Prudential and Centrica climbed 3.2 to 4%.

Glencore, ICP, RS Group, Halma, Rentokil Initial, IMI, AstraZeneca, Anglo American Plc, Relx, Diploma, St. James’s Place, Standard Chartered, Barclays, Fresnillo, Ashtead and 3i advanced 2 to 3%.

Airtel Africa ended down 3.3%. Ocado Group and Vodafone Group ended lower by 1.3% and 1%, respectively.

In the German market, HeidelbergCement climbed 3%. MTU Aero Engines, Bayer, Porsche, Sartorius, Siemens Healthineers, BMW, Adidas, Siemens, Mercedes-Benz and BASF gained 1 to 2%.

Commerzbank ended down 2.2%. Munich RE, Zalando, Hannover Rueck, RWE and E.ON lost 0.8 to 1.25%.

In Paris, Eurofins Scientific rallied 4.3%. Safran gained about 2.8%. Schneider Electric, Legrand, ArcelorMittal, Alstom, Dassault Systemes, L’Oreal and Kering advanced 1 to 2%.

Renault dropped about 4.7%. Airbus Group and Vinci both ended lower by 1.75%.

Shares of Finnish mining equipment maker Metso soared 9% after the company gave an upbeat outlook after reporting better-than-expected earnings for the fourth quarter.

Italian financial group Unipol Gruppo surged 21…