European stocks closed higher on Friday, trimming loses from the week with support from heavyweight banks and luxury brands. The Euro STOXX 50 rose 0.6% to 6,458 and the STOXX Europe 600 gained 0.5% to 653. Santander surged 2.7%, while BNP Paribas, Deutsche Bank, BBVA, and Nordea rose more than 1% to limit losses on the week as the US Treasury signal that it would intervene in bond market weakness on Wednesday raised volatility for benchmark credit costs. In turn, Italian lenders underperformed amid a wave of M&A possibilities in the sector, with UniCredit closing 0.3% higher while Intesa Sanpaolo fell 0.7%. Banca MPS simultaneously launched bids on Banco BMP and Banca Generali, jointly worth €34 billion, as it fends off Intesa’s takeover bid. Meanwhile, LVMH, Adidas, Hermes, and Ferrari jumped between 2.3% and 1.5% for a positive session for luxury brands. The Euro STOXX 50 lost 1.3% and the STOXX Europe 600 fell 0.6% on the week.