STOXX 600 Inches Up Amid Weekly Turmoil in Middle East

Europe's STOXX 600 saw slight gains but is facing its worst weekly performance in a year due to turmoil in the Middle East impacting global markets. Defense stocks led gains, while healthcare dropped. Key factors include euro zone GDP data and ECB leadership speeches as Lufthansa showed notable improvement.

The European stock index STOXX 600 saw modest gains of 0.2% on Friday, reaching 606.26 points; however, it remained close to a one-month low. The index faces its worst weekly performance in nearly a year as the escalating conflict in the Middle East dampened global risk appetite and shook financial markets.

Defense stocks provided the largest boost to the index, contrasting with declines in the healthcare sector. Notably, Roche and Zealand Pharma's shares fell 1.7% and 31.2%, respectively, after releasing mid-stage data on an experimental obesity drug.

The ongoing conflict in the Middle East has extended over the past week, without signs of abating, contributing to a 4.6% decline in European stocks this week. Focus will also turn to the forthcoming euro zone GDP revision and employment data, along with speeches from ECB President Christine Lagarde and board member Isabel Schnabel. Meanwhile, Lufthansa rose 2.8% following better-than-expected 2025 financial forecasts.

(With inputs from agencies.)