Major European Markets Close On Firm Note; BoE, ECB Hold Rates

European equities closed firmer after investors digested a mix of corporate earnings, economic data and central bank decisions. The ECB and Bank of England both held policy rates unchanged, with the BoE keeping the bank rate at 3.75% (MPC vote 8-1) and warning of potential second‑round energy-price effects. Markets rallied: the pan‑European Stoxx 600 rose 1.38%, the UK’s FTSE 100 gained 1.62%, Germany’s DAX jumped 1.41% and Switzerland’s SMI added 0.8%. Gains were broad-based, led by sector and stock-specific moves (notable rises in utilities, miners, industrials and select techs), while some banks and cyclicals lagged. Economic releases showed mixed fundamentals — Germany retail sales fell sharply and Eurozone inflation accelerated to 3% year‑on‑year in April — tempering upside amid geopolitical concerns over the Middle East. Overall the piece frames a constructive market reaction to policy stability but underscores lingering downside risks from energy-driven inflation and geopolitical tensions.