Europe close: Stocks hit two-week high on strong economic data

(Sharecast News) - European stock markets finished moderately higher on Friday, with a flat performance in Frankfurt offset by gains elsewhere, sending the Stoxx 600 to a two-week high.

The pan-European benchmark closed up 0.3% at 553.64, hitting its highest closing price since 21 May.

After trading within a narrow range for most of the session, equities were given a boost in afternoon trade following a strong start on Wall Street following a better-than-expected US non-farm payrolls report.

Hiring rose by 139,000 in May, according to the Department of Labor, slightly ahead of the 130,000 consensus estimate though down from a downwardly revised 147,000 in April. The stats will reassure investors concerned with the US economic outlook following a much worse-than-forecast ADP jobs report on Wednesday, and a flurry of disappointing data over recent days.

Economic data closer to home came in ahead of estimates on Friday, with Eurostat upgrading its estimates for first-quarter eurozone GDP growth to 0.6% from earlier predictions of 0.3%. That was the fastest rate of quarterly growth since the third quarter of 2022.

However, German trade data showed the smallest trade surplus in six months, which could have kept a lid on the country's DAX index. The trade balance shrank to �14.6bn in April from �21.2bn in March, well below the �20.2bn expected by the market, as exports fell more than expected.

Market movers

Frankfurt-listed sportswear and athleisure retailers Adidas and Puma were both lower after US peer Lululemon Athletica cut its annual profit forecast citing tariffs, economic uncertainty and consumer caution as shoppers cut discretionary spending.

Polish banks were lower again after the election of right wing nationalist Karol Nawrocki as president. Bank Polska Kasa Opieki, Powszechna Kasa Oszczednosci Bank, and Santander Polska all fell for the third straight session.

In London, Prudential and Phoenix Group were both boosted by an upgrade to 'buy' at Deutsche Bank, while bootmaker Dr Martens was extending big gains made yesterday on the back of its upbeat 2026 guidance.

French TV company Canal+ was a high riser, jumping nearly 10% after reaching a �210m settlement with the country's Centre of Cinema. The settlement "settles the disputes relating to past fiscal years and removes uncertainty regarding the possibility of a material additional disbursement", the company said.