European equities edged lower on Friday after their strongest daily advance in more than two months, with the Stoxx Europe 600 falling 0.21% while remaining on course for a 0.54% weekly gain. Germany’s DAX and France’s CAC 40 each declined 0.4%, while London’s FTSE 100 fell 0.3%. Markets recovered after a sharp Tuesday sell-off triggered by an attack on Saudi Arabia’s East-West pipeline, fresh Houthi strikes in the Red Sea and a surge in oil and bond yields. The Federal Reserve’s unanimous 25-basis-point rate increase to 3.75%-4%, its first hike since mid-2023, reassured investors that it would continue fighting energy-driven inflation. The Bank of England held its rate at 3.75% in a 6-3 vote but warned that persistent energy-cost pressures could prompt a November increase to 4.00%. Brent crude remained nearly 15% higher on the week near $104 a barrel despite a 1.5% Friday decline, while luxury and personal-goods stocks led the broader equity pullback.