European stocks rise amid potential ceasefire extension
European stocks closed higher on Friday as investors weighed the prospects for a potential extension of the ongoing fragile ceasefire between the U.S. and Iran.
The pan-European Stoxx 600 ended the final trading day of the month up 0.2%. Most sectors were in positive territory, though performances were mixed among the region’s major bourses.
The regional Stoxx Aerospace and Defense index closed about 1% higher after a Russian drone hit a Romanian apartment building. Romania, which borders Ukraine, is a member of both NATO and the EU.
Creotech Instruments led the sector, with the Polish aerospace and microsatellite specialist rising 19% on the day, as Austrian aerospace imprint FACC ended Friday’s session up 3.2%.
Asian markets looked past renewed Iranian military activity, with South Korea’s Kospi and Japan’s Topix hitting record highs overnight.
Iran’s armed forces reportedly fired missiles at unspecified targets late Thursday, according to state media outlet Fars.
The latest military activity in southern Iran came just hours after the Pentagon said Tehran had fired a ballistic missile toward Kuwait and deployed attack drones in and around the Strait of Hormuz.
Earlier on Thursday, a White House official confirmed an Axios report saying the U.S. and Iran had “mostly agreed” on the terms of a deal aimed at temporarily halting the three-month conflict.
Reports suggest a deal would extend the ongoing ceasefire for 60 days and create the framework for talks on the future of Iran’s nuclear program.
On Wall Street, U.S. equities were last seen edging higher, with the Dow Jones Industrial Average up 0.7% higher, the S&P 500 adding 0.4% and the Nasdaq gaining 0.4%.
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