European Stocks Surge amid Earnings and Diplomatic Hopes

European shares reached near five-month highs as positive earnings and a meeting between Trump and Putin offered investor support. The STOXX 600 index and major bourses like the FTSE 100 and DAX saw gains. Key sectors rallied, with miners leading the charge despite geopolitical and economic uncertainties.

European shares achieved near five-month highs on Friday, buoyed by a mostly positive earnings season and attention on an important meeting between U.S. President Donald Trump and Russian President Vladimir Putin.

The pan-European STOXX 600 index rose 0.3% by 0853 GMT, fueled by gains in miners and chemical stocks. As the index marked its second consecutive week of gains, other major European markets, including the UK's FTSE 100 and Germany's DAX, also recorded increases.

Investor focus was also drawn to the imminent Trump-Putin meeting in Alaska, where hopes for a Ukrainian ceasefire and a potential nuclear deal could shift market dynamics. Despite concerns over U.S. producer prices and weak Chinese data affecting expectations of a Federal Reserve rate cut, European company earnings remained resilient, with 54% beating estimates.

(With inputs from agencies.)