European stocks record their largest gain since early this month

Supported by stronger-than-expected commercial activity data, European stock markets rose on Friday. The Stoxx Europe 600 Index closed up 0.6%, marking the largest single-day gain since August 4. Data showed that the eurozone's private sector activity unexpectedly improved in August, with manufacturing growth reaching the fastest pace in over four years. Rising metal prices fueled leading performance in mining stocks, while utilities and energy stocks were among the top decliners. However, data also indicated that, due to subdued summer trading, the benchmark index's trading volume was about 20% below its 20-day average level. European stocks had already fallen for two consecutive weeks, as the boost from a strong earnings season gradually faded. With ongoing geopolitical uncertainty, investors are still awaiting new market catalysts. However, the index is currently just about 1% below its record high.