European Stocks Close Higher Amid Signs Of Progress In US-Iran Talks
BRUSSELS, May 23 (NNN-dpa-AFX) -- European stocks closed higher on Friday amid optimism about an end to the United States (US)-Iran war, thanks to negotiations between the two nations making "some progress," dpa-AFX reported.
US Secretary of State Marco Rubio said there have been "some good signs" but cautioned he does not want to be "overly optimistic" and noted President Donald Trump has been clear he has "other options" if the US and Iran cannot get a "good deal."
Rubio's comments come as reports from Iranian state media suggest the latest US peace proposal has narrowed some of the gaps between the two countries.
Despite signs of progress, both sides are still at odds over Tehran's uranium stockpile and future control of the Strait of Hormuz.
Investors also digested a slew of regional economic data and some corporate news. Data showing an improvement in German consumer sentiment and a slightly faster pace of economic growth aided sentiment.
The pan European Stoxx 600 climbed 0.73 per cent. The UK's FTSE 100 gained 0.22 per cent, Germany's DAX jumped 1.15 per cent and France's CAC 40 closed 0.37 per cent up. Switzerland's SMI finished with a gain of 0.42 per cent.
Among other markets in Europe, Austria, Belgium, Denmark, Finland, Greece, Iceland, Ireland, the Netherlands, Poland, Sweden, and Turkey closed higher.
The Czech Republic, Norway, Portugal, and Russia ended weak, while Spain closed flat.
In the UK market, Games Workshop soared nearly 8.0 per cent. The miniature wargames maker forecast annual profit before tax above expectations.
Rightmove surged 7.25 per cent. Croda International climbed 4.3 per cent, while Metlen Energy & Metals, Rolls-Royce Holdings, Persimmon, 3i Group, Melrose Industries, Diploma, BT Group, Polar Capital Technology Trust, Airtel Africa, BAE Systems, and British Land gained 2.0 to 4.0 per cent.
British IT reseller Softcat soared nearly 13 per cent after raising its full-year profit guidance.
Convatec Group dropped 3.2 per cent. BP, Experian, Lion Finance, Fresnillo, Sainsbury (J), Endeavour Mining, Compass Group, The Sage Group, Prudential, Reckitt Benckiser, Shell, Imperial Brands, and Marks & Spencer lost 1.0 to 2.5 per cent.
In the German market, Infineon surged about 8.0 per cent. Deutsche Post moved up by more than 4.0 per cent. Adidas moved up sharply after Deckers Outdoor forecast annual sales and profit above Wall Street estimates.
Symrise, MTU Aero Engines, Scout24, Rheinmetall, Continental, Merck, Siemens, Porsche Automobil Holding, Volkswagen, Heidelberg Materials, Commerzbank, and Siemens Energy also posted strong gains.
Vonovia drifted down more than 5.0 per cent. Fresenius Medical Care shed nearly 4.0 per cent and Fresenius eased by 2.8 per cent. E.ON, Munich RE, and Bayer also ended notably lower.
In the French market, STMicroelectronics climbed nearly 5.0 per cent. ArcelorMittal moved up 4.1 per cent and Stellantis gained 3.0 per cent.
Airbus, Safran, Accor, Schneider Electric, Dassault Systèmes, Saint-Gobain, Legrand, Thales, and Michelin gained 1.0 to 2.2 per cent.
TotalEnergies, Danone, Teleperformance, EssilorLuxottica, Vinci, Carrefour, and Kering lost 1.0 to 2.0 per cent.
In economic news, German consumer sentiment is set to improve in June driven by rising income expectations and willingness to buy but the war in West Asia continues to cloud the outlook, latest results of the NIM Consumer Climate powered by GfK showed.
The consumer confidence index rose unexpectedly to -29.8 points in June from -33.1 points in May. The score was expected to fall to -33.7.
Despite an improvement in the economic expectations index, the majority of consumers still expect the economic situation to deteriorate over the coming 12 months. The economic expectations index climbed to -11.2 in May from -13.7 in the prior month.
Consumers expect prices to rise over the coming 12 months but the indicator dropped 5.4 points to -0.4 in May. The decline reflects the reduction in the energy tax on diesel and gasoline.
Data from Destatis showed the German economy expanded at a slightly faster pace in the first quarter, as previously estimated. Gross domestic product (GDP) grew 0.3 per cent from a quarter ago, unrevised from the previous estimate and followed fourth quarter's 0.2 per cent expansion.
On a yearly basis, GDP registered a calendar-adjusted growth of 0.4 per cent, which was slightly faster than the initial estimate of 0.3 per cent.
At the same time, the statistical office confirmed that price-adjusted GDP logged a steady annual growth of 0.5 per cent in the first quarter.
Data from the statistical office INSEE showed France's manufacturing business climate index rose to 102 in May 2026, compared with expectations and April's 100. It also marked the highest reading in four months.
A separate data from INSEE showed France's overall business climate remained at 94 in May, unchanged from April as expected, and still well below its long-term average of 100.
UK retail sales declined at the fastest pace in nearly a year in April as consumers reduced fuel purchases after the outbreak of the conflict in West Asia.
Retail sales declined 1.3 per cent on a monthly basis in April, in contrast to the revised 0.6 per cent rise in March, the Office for National Statistics reported. This was the biggest fall since May 2025 and exceeded economists' forecast of a 0.6 per cent drop.
On a yearly basis, retail sales unexpectedly remained flat after rising 1.4 per cent in March. Economists were expecting an annual growth of 1.3 per cent.
The UK consumer sentiment index rose two points to -23 in May on improving perceptions of both personal finances and their wider economy, a survey published jointly by GfK and the Nuremberg Institute for Market Decisions showed.
The index measuring changes in personal finances over the last 12 months increased four points to -7 and the forecast for personal finances gained two points to -2. Assessment about past general economic situation climbed four points to -47 and their expectations moved up five points to -38.
--NNN-dpa-AFX
