European shares rose 0.7% on Friday, with the pan-European STOXX 600 at 640.66 by 0704 GMT and on course to end a three-week losing streak as oil eased after two sessions of gains; investors remained cautious about Middle East developments.
Oil prices eased as investors weighed the possibility of a US-Iran truce against Iranian President Masoud Pezeshkian’s pledge never to surrender and the bombing of Saudi Arabia by Houthi rebels. Energy shares fell 0.7%, while Ryanair and Lufthansa gained more than 2% each and the travel and leisure index rose 1.2%.
A survey showed German consumer sentiment weakened more than expected heading into October as rising energy prices soured households’ income outlook; the DAX rose 0.6%. Finland’s Konecranes climbed 5.1% after launching a buyback programme and raising its financial targets.
