European Stocks Rise 0.5% Led by Telecoms, Media; Mining, Banking Lag

European stock markets have experienced a seventh consecutive day of gains, with telecommunications and media stocks leading the way. The Stoxx Europe 600 index closed 0.5% higher, driven by strong performances in the telecommunications sector. The media sector also showed resilience, with Universal Music Group rising 3.4% due to increased subscriptions.

In contrast, the mining sector faced challenges, with Glencore's stock plummeting 7.3% after the company reported lower-than-expected copper production and forecasted a decline in commodity marketing profits for the year. The banking sector also underperformed, with Santander dropping 4.2% following the announcement of a decrease in first-quarter loan income. However, Société Générale bucked the trend, rising 3.8% on the back of significant growth in its stock trading business.

Following the softening of the U.S. trade stance and the reduction of tariff burdens on automakers, the Stoxx 600 index has recovered most of its losses since April. Earlier in the day, European stocks briefly followed U.S. markets lower after data indicated the first economic contraction in the U.S. since 2022. Beatrice Guedj, head of research at Swiss Life Asset Managers, noted that today marks a critical point in the earnings season, revealing the varied impacts of the trade war on different industries.