The German market is notably higher in afternoon trading Friday, following firm cues from Asia/Pacific, after some positive news emerged from the two-day summit of European Union leaders underway in Brussels.
The leaders have agreed to make use of Eurozone's bailout funds to recapitalize the region's banks directly once an effective single supervisory mechanism is established, relieving the governments of the burden of bailing out troubled lenders. The European Commission will present proposals for a single supervisory mechanism soon.
EU President Herman Van Rompuy said the leaders have approved a 120 billion-euro package to promote growth in the debt-stricken eurozone as well as across the broader 27-nation European Union. The leaders also discussed ways to reduce the high borrowing costs faced by Spain and Italy.
The Euro Stoxx 50 index of eurozone bluechip stocks is climbing 2.53 percent, while the Stoxx Europe 50 index, which includes some major U.K. companies, is falling 1.23 percent.
The DAX index opened higher and is currently adding 2.15 percent.
Deutsche Boerse is climbing 4.8 percent. JPMorgan raised the stock to "Overweight" from "Neutral."
Deutsche Bank is advancing 4 percent and Commerzbank is climbing 2 percent.
Daimler, BMW and Volkswagen are adding between 3.4 percent and 2 percent. UBS raised BMW to "Buy" from "Neutral."
Citigroup raised Deutsche Post to "Buy" from "Neutral." The stock is up 2.5 percent.
Adidas is the lone decliner, by losing 2.1 percent, after peer Nike's results missed estimates.
Elsewhere in Europe, the French CAC 40 is climbing 2.5 percent and the UK's FTSE 100 is rising 1.3 percent. Switzerland's SMI is adding 0.88 percent.
In economic news, retail sales in Germany decreased for a second consecutive month in May, the latest figures from the Federal Statistical Office showed. Sales fell 0.3 percent month-on-month in real terms in May, following a 0.2 percent decline in the previous month.
Eurozone annual inflation remained unchanged at 2.4 percent in June, flash estimate issued by Eurostat showed. The outcome was in line with economists' expectations.
Across Asia/Pacific, major markets closed firmly in positive territory. Australia's All Ordinaries added 1.2 percent, China's Shanghai Composite Index gained 1.4 percent and Hong Kong's Hang Seng climbed 2.2 percent. Japan's Nikkei 225 advanced 1.5 percent.
In the U.S., futures point to a firm start on Wall Street. In the previous session, major markets closed lower, amid concerns about Europe and a negative reaction to the Supreme Court's decision to uphold President Obama's healthcare reform law, including the law's individual insurance mandate. The Nasdaq ended down 0.9 percent, while the Dow and the S&P 500 edged down 0.2 percent each.
In the commodity space, crude for August delivery is adding $2.28 to $79.97 per barrel and August gold is climbing $19.3 at $1569.7 a troy ounce.
For comments and feedback contact: editorial@rttnews.com
Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.