Euro Stocks Rise on Surprise UK Growth Beat

European stocks closed higher on Friday following better-than-expected UK economic growth in July. The UK's Office for National Statistics reported a 0.4% increase, exceeding expectations of no change and beating June's 0.3% growth rate.

The services sector drove the growth, which has implications for interest rates. Stronger growth makes investors less confident that the Bank of England will cut interest rates soon, resulting in higher short-dated UK government bond yields and a stronger pound.

Stellantis shares also rose 2.6% after announcing a partnership with China's UQI Robotics to explore autonomous delivery logistics using its Box-on-Wheels concept initially targeting Europe.