Commuters crossing a junction near the Bank of England (BOE), left, in the City of London, UK, on Wednesday, May 8, 2024. Bank of England policymakers appear the most divided since they brought their hiking cycle to a close last year, illustrating the challenge that Governor Andrew Bailey faces in steering his colleagues toward possible interest-rate cuts in the coming weeks. Photographer: Hollie Adams/Bloomberg via Getty Images
This is CNBC's live blog covering European markets.
European markets closed higher on Friday as positive momentum continued into the end of the week.
The pan-European Stoxx 600 index was up by 0.8% by the close. Mining stocks and utilities led gains and were up 1.3% and 1.5% respectively.
All major bourses were in the green, with the Stoxx 600, as well as Germany's Dax, France's CAC 40 and the U.K.'s FTSE 100 notching fresh record highs.
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"As equities do we're looking to the future I think. Generally speaking investors are seeing a brighter future ahead for European markets and they're reflecting that now," Daniel Morris, chief market strategist at BNP Paribas Asset Management told CNBC's "Squawk Box Europe" on Friday.
The U.K. economy emerged from a recession, first-quarter gross domestic product data released Friday showed. GDP rose 0.6% on the previous three months — above the 0.4% estimate. The U.K. had entered a shallow recession in the second half of 2023.
Hong Kong stocks rose Friday, with the Hang Seng Index hitting its highest level in 10 months. Mainland China stocks were flat.
Money Report
In the U.S., the Dow Jones Industrial Average rose on Friday, putting the 30-stock index on track for yet another winning session.
Markets reprice Bank of England rate-cut bets as UK records fastest growth in nearly 3 years
A slew of commentary from the Bank of England and a better-than-expected economic growth number have left traders and investors scrambling to refine their bets on when the U.K. central bank will start to cut its benchmark rate.
Markets on Friday were pricing in an around 48% chance of a rate cut in June according to LSEG data, slightly higher than Thursday's 45% probability.
Economists at Swiss Bank UBS were among those who shifted their view on when the BOE may cut interest rates, saying they were now expecting the first rate cut to take place in June rather than August.
"The broader message and the tone of the MPC were more dovish than we had anticipated," they said in a note published following the BOE's latest interest rate decision.
— Sophie Kiderlin
UK homebuilders could see biggest boost from rate cuts, strategist says
Homebuilders, especially in the U.K., could see the biggest boost if the Bank of England starts cutting interest rates, Michael Field, European equity market strategist at Morningstar, told CNBC's "Street Signs Europe" on Friday.
Easing interest rates and falling inflation should eventually help consumers and thereby boost consumer discretionary companies — including giants such as Nestle and Anheuser-Busch Inbev, as well as homebuilding companies.
— Sophie Kiderlin
'Brighter future' ahead for Europe markets as they hit record highs
Investors see a "brighter future" for European markets, according to Daniel Morris, chief market strategist at BNP Paribas Asset Management.
It comes as anticipation grows for interest rate cuts in Europe and the U.K.'s first-quarter gross domestic product beat expectations.
"As equities do we're looking to the future I think. Generally speaking investors are seeing a brighter future ahead for European markets and they're reflecting that now," he told CNBC's "Squawk Box Europe" on Friday.
Major European stock indices, including Germany's DAX, France's CAC 40 and the U.K.'s FTSE 100, as well as the pan-European Stoxx 600, hit fresh intraday record highs on Friday.
— Sophie Kiderlin
Biggest movers: Getinge down 8%, Iveco Group up 7%
The Europe listed shares of medical technology firm Getinge tumbled 7.8% on Friday after the U.S. Food and Drug Administration earlier in the week issued a safety warning about the company's heart devices.
The FDA advised health care providers to move away from Getinge's devices over concerns that issues and risks of recently recalled devices had not been addressed sufficiently.
Getinge did not immediately respond to CNBC's request for comment.
Meanwhile, Iveco Group shares were last trading 6.83% higher on Friday after the Italian auto company released its first-quarter earnings. Adjusted net income and earnings before tax and interest soared in the first three months of the year compared to the same time period a year earlier, the company said.
— Sophie Kiderlin
Europe markets open higher
European markets opened higher on Friday as positive momentum continued into the end of the week and the U.K. posted first-quarter gross domestic product that was better than expected.
The pan-European Stoxx 600 was 0.52% higher at 8:08 a.m. London time. The U.K.'s FTSE 100 was last up 0.41%, while Germany's DAX rose 0.39% and France's CAC 40 was 0.45% higher.
— Sophie Kiderlin
UK exits recession as first-quarter GDP beats expectations
The U.K. economy has exited the shallow recession it entered in the second half of 2023, gross domestic product data released on Friday showed.
GDP rose 0.6% in the first quarter, compared to expectations for 0.4% growth. The production sector grew by 0.8% in the first three months of the year, while construction contracted by 0.9%
On a monthly basis, the economy expanded by 0.4% in March — an acceleration from February's 0.2% growth.
— Sophie Kiderlin
European markets: Here are the opening calls
European markets are expected to open higher Friday.
The U.K.'s FTSE 100 index is expected to open 24 points higher at 8,406, Germany's DAX up 47 points at 18,734, France's CAC 29 points higher at 8,217 and Italy's FTSE MIB up 85 points at 34,121, according to data from IG.
Earnings are due from IAG and Mediobanca.
— Sophie Kiderlin
CNBC Pro: Portfolio manager names 3 under-the-radar growth stocks to buy right now
A bumpy few months for mega caps like the "Magnificent Seven" have led some investors to question whether now is the best time to be buying growth stocks.
One investor says growth stocks still offer opportunities — but it's time to get selective.
"Growth stocks will continue to outperform value stocks, generally speaking. But valuations are stretched so we are looking for higher quality names," Adam Coons, portfolio manager at Winthrop Capital Management, told CNBC Pro on May. 1.
Coons named three of his favorite under-the-radar growth stocks to consider.
CNBC Pro subscribers can read more here.
— Amala Balakrishner
CNBC Pro: An Nvidia partner and more: Morgan Stanley names tech stocks set for a boost from Arm-based PC chips
The global semiconductor industry is set for a "transformation" — thanks to artificial intelligence PCs loaded with chips developed by British chip designer Arm, according to Morgan Stanley.
That's because more powerful PCs are needed to run AI applications.
Arm-based central processing units are known for energy conservation and thermal control, which lead to longer battery life and more compact designs, Morgan Stanley noted, adding that they "exhibit a notable edge in power efficiency."
The bank therefore expects Arm-based AI PCs to "start a transformation that will affect the global semis industry."
What stocks will benefit from Arm's foray into AI PCs?
CNBC Pro subscribers can read more here.
— Weizhen Tan
