European Shares Rebound Amid Middle East Conflict, US Decision Pending

European stocks rebounded on Friday after three consecutive sessions of losses, buoyed by investor relief over President Donald Trump's indication that a decision on U.S. military involvement in the Israel-Iran conflict will be made within two weeks. The pan-European STOXX 600 rose between 0.3% and 0.6%, with major indices including Germany's DAX, France's CAC 40, and the U.K.'s FTSE 100 also advancing. This cautious optimism helped risk assets recover, especially in travel and leisure sectors benefiting from easing oil prices, while energy stocks declined. Market sentiment remains sensitive to developments in the Middle East, as European and Iranian officials prepare to meet in Geneva to seek diplomatic progress. Economic data from the U.K. highlighted a sharper-than-expected drop in retail sales and increased public sector borrowing, while Germany reported a notable decline in producer prices. Corporate movements included Thyssenkrupp Nucera's acquisition of green hydrogen technology assets and Sanofi's FDA approval for a new treatment, reflecting pockets of sector-specific gains amid geopolitical uncertainty.