European Shares Surge as Luxury Stocks and Tariff Optimism Boost Enthusiasm

European shares hit a record high as luxury stocks, led by Burberry's strong performance, surged. Investors reacted positively to Trump's less aggressive tariff hints. Personal and household goods, mining, and business activities in the Eurozone showed growth signs. Germany's growth forecast was slashed amid concerns.

European shares soared to a record peak on Friday, fueled by buoyant luxury stocks following Burberry's impressive sales figures. Investors were also buoyed by the prospect of a more tempered tariff approach from U.S. President Donald Trump. As of 0952 GMT, the pan-European STOXX 600 showed a 0.3% increase.

The personal and household goods sector climbed 1.6%, with Burberry leading the charge by surging 11.5%, spurred by a smaller-than-anticipated decline in quarterly store sales. Other luxury stocks mirrored this uptrend, with Hugo Boss up 2.4%, Moncler rising 5.1%, and Kering advancing 9.1%. The STOXX Luxury 10 index gained 2.5%.

Mining stocks saw a 2.6% rise alongside surging metal prices. The benchmark index rose 1.6% over the week, poised for a fifth consecutive weekly upwards trajectory as markets responded favorably to the vagueness in Trump's tariff-related statements regarding the EU and other partners.

(With inputs from agencies.)