European bourses experienced moderate gains on Friday as energy stocks surged following media reports of Iran's plans to launch attacks on Israel using Iraqi bases. Bank and retail stocks also contributed to the broad market improvements, as traders took advantage of bargain opportunities after a lackluster October for European equities.
Investors were attentive to Wall Street futures, which indicated a predominantly positive sentiment, albeit lower closes in Asian exchanges overnight. In Switzerland, the consumer price index (CPI) reported a 0.6% year-over-year increase for October, along with a 0.1% month-over-month decline, according to the Federal Statistical Office.
The nation's core CPI, which excludes certain food and fuel items, observed a 0.8% rise year-over-year and a modest 0.1% uptick monthly. The pan-European Stoxx Europe 600 Index saw a rise of 0.8% during midday trading. The Stoxx Europe 600 Technology Index matched this increase at 0.8%, while the Stoxx 600 Banks Index reported a gain of 1.1%.
The Stoxx Europe 600 Oil and Gas Index rose by 1.2%, and the Stoxx 600 Europe Food and Beverage Index saw a 0.3% increase. The REITE, a notable European REIT index, experienced a 0.3% rise, as did the Stoxx Europe 600 Retail Index, which improved by 0.8%. In national markets, Germany's DAX recorded a 0.6% gain, while London's FTSE 100 was up 0.8%.
The CAC 40 in Paris increased by 0.7%, and Spain's IBEX 35 gained 0.9%. Yield on the benchmark 10-year German bonds rose significantly, approaching 2.40%. Front-month North Sea Brent crude oil futures also saw a notable increase, climbing by 1.8% to $74.13 per barrel. The Euro Stoxx 50 volatility index fell by 2.3% to 21.23, yet it still indicates above-average volatility for European stock markets over the next 30 days, suggesting potential turbulence ahead.
A reading above 20 denotes choppy market conditions, while a reading below 20 reflects calmer exchanges..