European markets rise on strong Eurozone activity amid geopolitical caution

European stock markets showed modest gains on Friday, supported by better-than-expected economic activity in the Eurozone. The S&P Global composite PMI for the Eurozone rose to 52.1 in August, exceeding economist expectations of 51.8.

Despite the growth, investors remain cautious due to geopolitical tensions involving the United States and Iran, as well as high long-term bond yields. In Italy, Banca Monte dei Paschi di Siena's board approved two voluntary exchange offers for Banco BPM and Banca Generali shares.

In the United States, Treasury Secretary Scott Bessent indicated that the administration would introduce new fiscal initiatives to address rising borrowing costs. This includes doubling the scale of long-term securities buybacks to ensure market stability, with operations potentially exceeding $4 billion starting next month.

Market indicators showed the Euro trading at approximately 1.17 against the US Dollar, while Brent crude oil prices saw a slight decline. The spread between Italian BTP and German Bund yields narrowed to 79 basis points.