European stock markets traded higher on Thursday after Israel and Lebanon agreed to reinstate their fragile ceasefire, offering investors some relief following several days of military escalation that included drone attacks and cross-border strikes.
Despite the positive sentiment, gains remained measured as markets continued to grapple with concerns surrounding private credit markets, tariff uncertainty, inflationary pressures and the outlook for interest rates.
France’s CAC 40 led regional advances with a gain of 1.1%, while Germany’s DAX rose 0.6%. In contrast, the UK’s FTSE 100 underperformed its European peers, slipping 0.2%.
Corporate Movers
Among individual stocks, media group Vivendi (EU:VIV) declined 4.6% after suffering a setback in its challenge against European Union antitrust authorities, a decision that weighed on investor sentiment.
Shares in drinks producer Remy Cointreau (EU:RCO) surged 11% after Chief Executive Franck Marilly outlined a far-reaching three-year transformation strategy aimed at improving growth and profitability.
In Amsterdam, Universal Music Group (EU:UMG) fell 5.6% after Pershing Square, the investment vehicle led by Bill Ackman, sold its remaining holding in the world’s largest music company.
Biopharmaceutical company Pharming Group (EU:PHARM) gained approximately 2% after announcing that the U.S. Food and Drug Administration had accepted its resubmitted supplemental New Drug Application for Joenja, targeting the treatment of children aged four to eleven with APDS.
Meanwhile, online trading and investment platform CMC Markets (LSE:CMCX) jumped 13% in London after upgrading its outlook for net operating income in fiscal 2027.
Dutch healthcare technology company Royal Philips (EU:PHIA) added around 1% after revealing a new seven-year strategic partnership with WellSpan Health.
Investors Remain Cautious
While the ceasefire agreement provided a positive backdrop for European equities, broader market sentiment remained cautious.
Investors continue to monitor geopolitical developments, inflation trends and central bank policy expectations, alongside concerns surrounding global trade and conditions within credit markets.
As a result, risk appetite improved modestly but remained restrained despite the generally positive performance across most major European indices.
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