European Stocks Close Higher; US Markets Extend Gains

European equity markets closed higher, buoyed by a positive risk sentiment among investors. Spain's IBEX 35 was the strongest performer, gaining 0.90%, followed closely by Italy's FTSE MIB, which rose by 0.81%. Germany's EU40 and the UK's FTSE 100 each added around 0.6%, while France's CAC 40 posted a more modest gain of 0.28%. This broad-based advance reflects continued investor willingness to take on risk despite ongoing geopolitical and trade-related uncertainties.

At the close, European 10-year bond yields were mixed. Germany and Spain saw slight increases, while yields declined in the UK, France, Italy, and Switzerland, indicating a selective approach by investors in the sovereign bond market.

In the US, major indices maintained solid gains as the European trading session concluded. The NASDAQ led the rally, driven by strength in technology and growth stocks, while the Russell 2000 also outperformed, suggesting healthy participation from small-cap shares. The S&P 500 and Dow Jones Industrial Average also posted robust gains, reflecting constructive investor sentiment.

US Treasury yields moved higher across most of the curve, indicating a modest bearish tone in the bond market as investors priced in resilient economic growth and the prospect of interest rates remaining elevated for an extended period. The 2-year Treasury yield rose to 4.2551%, while the 30-year yield increased to 5.1323%. This upward movement in yields suggests that traders are adjusting their expectations regarding near-term Federal Reserve easing.