European stocks closed firmly higher to record sharp gains in the first week of August as markets continued to assess the outlook of the European economy amid uncertain tariff levels by the US and policy reactions by the ECB. The Eurozone’s STOXX 50 gained 0.4% to 5,354, a 3.6% gain on the week, while the pan-European STOXX 600 advanced 0.3% to 547, a 2.2% rise on the week.
Banks continued to rise sharply in the session with BBVA, BNP Paribas, and UniCredit each gaining more than 2%.
In the meantime, Siemens advanced 2.2% following a volatile week while Volkswagen, Mercedes-Benz, and Stellantis also gained more than 2% each to set the pace for auto producers.
On the other hand, Munich Re sank 7.1% after releasing its earnings results.
Also, Rheinmetall lost 1.5% on reports that the US and Russia might agree to conditions for a ceasefire in Ukraine.