European Stocks Close Higher; German Inflation Cools, UK GDP Contracts

12:07 PM EDT, 06/12/2026 (MT Newswires) -- European stock markets closed higher Friday as the Stoxx Europe 600 climbed 1.9%, Germany's DAX 40 and France's CAC 40 each rose 1.8%, the FTSE 100 increased 1.6%, and the Swiss Market Index gained 1.3%.

US President Donald Trump announced Thursday that the U.S. and Iran may come to terms this weekend on an agreement to wind down their three-month-old war, the Associated Press reported.

Germany's annual inflation rate, measured by the consumer price index, eased to 2.6% in May from 2.9% in April, Destatis reported.

The inflation rate "was somewhat lower than in the previous months," Destatis President Ruth Brand said in a statement. "Energy prices remained at a high level as a result of the Iran war."

In the UK, monthly real GDP contracted an estimated 0.1% in April after rising 0.3% in March, according to the Office for National Statistics. That marked the first monthly contraction since August. Services output fell by 0.2%, production was flat, and construction rose 0.1%.

In corporate news, Barclays agreed to acquire the UK operations of GoHenry, a youth-focused money management education platform, from Acorns Grow.

Shares of Barclays gained 5% in London.

Shell plans to begin selling its offshore wind farms for more than $1 billion by year-end as it prioritizes its fossil-fuel business, Bloomberg reported. Separately, Shell suspended its $3 billion share buyback program through July 14 due to securities-law requirements tied to a shareholder circular from ARC Resources.

Shares of Shell fell 2% in London.

GSK's momelotinib received orphan drug designation from both the US Food and Drug Administration and the European Medicines Agency for the treatment of VEXAS syndrome.

Shares of the British pharmaceutical company increased 1% in London.

Dassault Aviation is seeking compensation from Airbus over reduced work share on the Eurodrone program following France's decision to shelve purchases of the drone system, Reuters reported late Thursday.

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