European stocks log worst quarter in a year with a drop of 2.9%

Europe's Stoxx 600 index closed 0.4% higher Friday, pulling further away from a six-month low hit on Wednesday.

Gains to end the week were tentative as the prospect of higher for longer interest rates continued to weigh, along with a weak economic outlook. The FTSE 100 was up 0.08% as France's CAC 40 and Germany's DAX gained 0.26% and 0.4%, respectively.

The Stoxx 600 notched losses of 2.1% this month, according to LSEG data, and dropped 2.9% this quarter, its worst performance for a year.

— Jenni Reid

European sportswear brands benefited late Friday from a first-quarter earnings beat by Nike.

Adidas shares were 6.3% higher at 4 p.m. London time, as Puma gained 6.2%. Retailer JD Sports was also higher, by 5.3%.

— Jenni Reid

The three major indexes opened Friday's session higher as the market looked to make up some ground in the 11th hour of a tough month and quarter.

The Dow rose about 0.5% shortly after 9:30 a.m. ET. The S&P 500 climbed 0.7%, while the Nasdaq Composite added nearly 1%.

— Alex Harring

Philips CEO Roy Jakobs talks about his businesses priorities and the outlook moving forward.

Euro zone inflation fell to 4.3% in September, its lowest level since 2021, flash figures showed Friday. It marked a drop from 5.2% the previous month.

In a reading likely to be seen as encouraging for the European Central Bank, core inflation — which strips out volatile food and energy prices — came in at 4.5%, its lowest rate for a year. The ECB hiked interest rates to a record level this month, but economists and investors expect them to have now reached their peak.

The euro maintained gains against the U.S. dollar following the release, and was trading 0.5% higher at $1.061, pulling away from an eight-month low Tuesday. The euro was choppy against the British pound.

— Jenni Reid

Shares of Commerzbank were up 7%, after the bank updated its capital returns policy. Commerzbank plans to return 3 billion euros ($3.2 billion) to shareholders as dividends and share buybacks, it said in an announcement, with a payout ratio of at least 70% for 2024.

Shares of chemicals producer OCI rose 6% after Jeffries upgraded the stock from "buy" to "hold."

— Hannah Ward-Glenton

European markets opened higher on Friday, after ending a five-day losing streak in the previous session.

The pan-European Stoxx 600 index was up by 0.4%, with most sectors trading in positive territory. Household goods were 1.3% higher, followed by tech stocks, which were up 1.2%. Oil and gas bucked the trend with a 0.3% downturn.

— Hannah Ward-Glenton

European markets are set to open mixed, according to IG data.

Britain's FTSE 100 looks to gain 6.7 points to 7,609, while Germany's DAX will be up 40 points to 15,349. France's CAC is forecast to move 5.6 points higher to 7119, and Italy's FTSE MIB will drop 4.5 points to 28,188.

— Hannah Ward-Glenton

The U.S. dollar has been on a tear following the Federal Reserve's apparent commitment to higher-for-longer interest rates.

While economies and stock markets around the globe are likely to come under pressure in such a scenario, a raft of European stocks could actually gain from the rising U.S. dollar, according to the Bank of America.

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— Amala Balakrishner

As interest rates peak, investment advisors now see opportunities for hefty gains through certain government bonds.

A combination of macroeconomic factors alongside tax-free advantages is expected to boost returns for investors.

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— Ganesh Rao