European Market Sees Mixed Week Amid Sectoral Shifts and Policy Anticipations

European shares faced a challenging week, closing flat on Friday due to telecom and energy sector declines and rising bond yields. The STOXX 600 index saw a 1.3% weekly rise, driven by luxury stocks' growth and anticipation around EU-U.S. policy decisions. President Trump's tariff remarks and ECB's upcoming policy influenced markets.

European shares faced a tumultuous week, retracting from record peaks to finish flat on Friday. The pan-European STOXX 600 index closed at 530.07 points as telecom and energy sectors faltered along with rising bond yields adding pressure.

Despite a 2.8% drop in the telecommunications sector, driven chiefly by Ericsson's 12.7% profit miss, and a 1% dip in the energy sector influenced by falling oil prices, the index enjoyed a 1.3% weekly gain—the longest streak in nearly a decade.

While bond yields nudged higher, particularly Germany's 10-year bund peaking at 2.569%, luxury goods buoyed the market. Anticipated European Central Bank policy decisions and U.S.-EU tariff concerns also played pivotal roles in investor sentiment.

(With inputs from agencies.)