iShares MSCI Sweden ETF

EWD

Market cap $289M

The ECB hiked its key deposit rate by 25 basis points in June as energy prices spiked. Investors had written off a hike at next week's meeting, but higher oil prices have brought monetary policy back into question.

Eurozone industrial output in May snapped a three-month streak of resilient activity in the face of higher energy costs following the conflict between the U.S. and Iran.

The DAX is singled out as the market most likely to see squeeze-driven gains in the weeks ahead Citi has warned that European stock markets face a growing risk of short squeezes, as investors caught betting against rising prices are forced to buy back their positions. The US bank said global equity positioning remained supportive of further gains, but that regional differences were becoming more pronounced.

The European Central Bank has given eurozone banks four months to develop plans aimed at countering artificial intelligence (AI)-enabled cyber threats that could undermine confidence in the financial system and disrupt payment networks. The directive, issued on Tuesday, reflects growing concern among European regulators over the increasing cyber capabilities of advanced AI models.

Eurozone retail sales rebounded in May, highlighting a brighter outlook for consumer demand, driven by sales of food, drinks and tobacco.

Europe's major stock markets ended higher on Friday, with the pan-European STOXX 600 and Germany's DAX reaching fresh record highs as investors welcomed easing expectations for near-term US interest rate hikes and rotated into cyclical sectors. The STOXX 600 climbed 0.7% to close at a record high after touching an intraday peak of 652.35, registering its strongest weekly gain since mid-May.

A jump in energy company profits is set to drive European blue-chip earnings growth in the second quarter, ​overshadowing far weaker gains across the rest of the ‌market, forecasts showed on Thursday.

The unemployment rate matched a record low in May, reflecting continued resilience despite elevated economic disruptions caused by conflict in the Middle East.

Peter Oppenheimer, chief global equity strategist at Goldman Sachs, says the ramp up in spending by hyperscalers will continue to drive earnings growth in other sectors and regions, including Europe. He speaks on Bloomberg Television.

Cooling energy prices helped push eurozone inflation lower in June, increasing the likelihood the European Central Bank will refrain from raising its key interest rate later this month.