European Stocks End Worst Week Since July on Bargain Hunt

The European stock market ended the week on a high note after capping its worst week since July. The pan-European Stoxx Europe 600 Index fell by 0.6% for the week, but closed up 0.6% on Friday as bargain hunters stepped in to stabilize continental bourses.

Regional performance was broadly aligned, with Germany's DAX rising 0.5%, London's FTSE 100 gaining about 0.3%, and France's CAC 40 adding 0.4%. The selloff represents a stark reversal for continental markets, which had entered August riding high on a stellar second-quarter reporting cycle.

The week's selloff was driven by escalating Middle East rhetoric and a fresh spike in crude prices, with Brent crude futures surging to a one-month high of $93.12 a barrel after U.S. President Donald Trump pledged to unleash 'economic warfare' against Tehran.

UBS analysts noted that the Treasury's rare intervention to buy back long-end bonds may have bought time, but not a solution, and warned that history shows bond-market interventions have limits in reducing borrowing costs when fiscal, inflation, or supply dynamics remain unfavorable.