European Stocks Close Higher; US Markets Extend Gains

European equity markets finished the session broadly higher, with buying seen across the region as investors maintained a positive risk tone. Spain and Italy led the major indices, while Germany, the UK, and France also posted solid gains.

• **Germany (EU40)**: 24,992.36 (+145.66, +0.59%)
• **France (CAC 40)**: 8,363.15 (+23.03, +0.28%)
• **UK (UK 100)**: 10,585.91 (+61.16, +0.58%)
• **Spain (IBEX 35)**: 19,379.81 (+172.92, +0.90%)
• **Italy (FTSE MIB)**: 52,285.08 (+422.30, +0.81%)

Spain's IBEX 35 was the strongest performer among the major markets, gaining 0.90%, followed closely by Italy's FTSE MIB with an 0.81% advance. Germany's EU40 and the UK's FTSE 100 each added around 0.6%, while France's CAC 40 posted a more modest 0.28% gain. The broad-based advance reflects continued investor willingness to add risk despite ongoing geopolitical and trade-related uncertainty.

European 10-year bond yields were mixed at the close, with Germany and Spain posting modest increases while yields declined in the UK, France, Italy, and Switzerland. The moves suggest investors were selective in the sovereign bond market rather than taking a broad directional view.

• **Germany**: 3.166%, +0.6 bps
• **France**: 3.963%, -0.1 bps
• **United Kingdom**: 5.032%, -1.3 bps
• **Spain**: 3.629%, +0.4 bps
• **Italy**: 3.987%, -0.1 bps
• **Switzerland**: 0.450%, -1.2 bps

US equities are maintaining solid gains as the European trading session comes to a close, with all the major indices advancing. The NASDAQ continues to lead the rally, fueled by strength in technology and growth stocks, while the Russell 2000 is also outperforming, signaling healthy participation from small-cap shares. The S&P 500 and Dow Jones Industrial Average are both posting robust gains as investor sentiment remains constructive heading into the latter part of the North American session.

• **Dow Jones**: 52,217.21, +373.02 points (+0.72%)
• **S&P 500**: 7,501.80, +58.51 points (+0.79%)
• **NASDAQ Composite**: 25,830.59, +322.51 points (+1.26%)
• **Russell 2000**: 2,974.68, +32.25 points (+1.10%)

The leadership from the NASDAQ and Russell 2000 points to a broad-based risk-on tone, with buyers remaining firmly in control as trading transitions into the final hours of the US session. The equity markets are doing well despite rising yields. US Treasury yields are moving higher across most of the curve, reflecting a modest bearish tone in the bond market as investors continue to price in resilient economic growth and the prospect of interest rates remaining higher for longer.

• **2-year Treasury**: 4.2551%, +4.0 bps
• **5-year Treasury**: 4.3641%, +3.4 bps
• **10-year Treasury**: 4.6261%, +2.8 bps
• **30-year Treasury**: 5.1323%, +1.4 bps

The move higher in yields, particularly in the 2-year Treasury, suggests traders are pushing back expectations for near-term Federal Reserve easing. Meanwhile, the smaller increase in the 30-year yield indicates the yield curve is flattening modestly as shorter-dated maturities underperform. Rising yields are occurring alongside gains in US equities, signaling that investors remain focused on the strength of the economy despite the higher cost of borrowing.