London, RakyatNTT.ID — European stocks closed higher on Friday, extending their weekly gains as investors reacted positively to the delayed release of U.S. inflation data and a series of upbeat corporate earnings across the region.

The pan-European Stoxx 600 index rose 0.2% by the end of the trading session, with most major exchanges and sectors finishing in positive territory.

The FTSE 100 in London extended Thursday’s rally, hitting another record high and closing up 0.7%, while Germany’s DAX index gained 0.13% to settle at 24,239.

U.S. Inflation Report Boosts Market Sentiment

The U.S. Bureau of Labor Statistics reported that annual inflation in September stood at 3%, slightly below expectations.

This data release was significant because it was among the few federal reports allowed during the ongoing U.S. government shutdown caused by a budget impasse in Congress.

Following the report, U.S. equities surged, with investors interpreting the lower inflation reading as a potential signal for the Federal Reserve to begin cutting interest rates as early as next week.

European Corporate Earnings in Focus

Investors also kept a close eye on corporate earnings across Europe, with several major companies releasing their quarterly results.

Swedish defense company Saab emerged as one of the top performers on Friday, rising 6.1% after the firm raised its 2025 sales forecast, citing surging demand in Europe’s defense sector amid heightened geopolitical tensions.

Meanwhile, British lender NatWest reported pre-tax profits of $2.9 billion in the third quarter, beating analysts’ expectations, reflecting steady loan growth and cost control measures.

Geopolitical Developments: EU and U.S. Sanctions on Russia

On the political front, the European Union (EU) and the United States jointly announced a new package of sanctions against Russia, signaling renewed cooperation between the two powers after months of strained relations.

Market analysts said the move could potentially stabilize transatlantic ties, which have faced pressure over differing views on trade and defense policy.

Trade Tensions: U.S.–Canada Dispute Resurfaces

In North America, investors also monitored trade developments involving Canada.

A controversial Ontario government advertisement featuring former U.S. President Ronald Reagan speaking out against tariffs sparked backlash from President Donald Trump, who accused the ad of misleading the public about his trade policy.

In response, Trump suspended all ongoing trade negotiations with Canada, reigniting concerns over potential tariff disputes and their global market implications. (*/rnc)