European stock markets experienced gains as investor confidence in the U.S. economy grew, spurred by a robust non-farm payroll report from the U.S. The Stoxx Europe 600 index closed up 0.4%, with the banking and energy sectors showing the largest increases.
Despite the rise, the regional benchmark index still reported a weekly decline of around 1.8%. Concerns persisted over potential geopolitical tensions, particularly the possibility of Israel targeting Iranian oil facilities, which has led to crude oil prices surging to a near two-year high for weekly gains.
Amid geopolitical uncertainties, the positive outlook for the U.S. economy has uplifted investors. Traders quickly reduced their bets on a November rate cut by the Federal Reserve. The Fed had previously made a substantial rate cut of 50 basis points in September to stimulate economic growth.
