21.08.202616:18:12UTC+00European Stocks Close Higher

European stocks ended higher on Friday, trimming the week’s earlier losses, supported by gains in heavyweight banks and luxury brands. The Euro STOXX 50 advanced 0.6% to 6,458, while the STOXX Europe 600 rose 0.5% to 653.

Among financials, Santander climbed 2.7%, and BNP Paribas, Deutsche Bank, BBVA, and Nordea each gained more than 1%, helping to limit weekly declines. Volatility in benchmark borrowing costs picked up after the US Treasury signaled on Wednesday that it was prepared to step in to address weakness in the bond market.

Italian banks lagged amid an intensified wave of sector M&A speculation. UniCredit closed 0.3% higher, while Intesa Sanpaolo slipped 0.7%. At the same time, Banca MPS launched takeover bids for Banco BPM and Banca Generali, together valued at €34 billion, as it seeks to fend off Intesa’s own acquisition attempt.

Luxury names had a strong session, with LVMH, Adidas, Hermès, and Ferrari gaining between 1.5% and 2.3%.

Over the full week, however, the Euro STOXX 50 fell 1.3% and the STOXX Europe 600 declined 0.6%.