Europe bulletin: Manchester synagogue attack aftermath, stocks close higher

On Friday, Europe saw developments across geopolitics and financial markets, with an update from the unfortunate attack in Manchester on Thursday.

A deadly attack at a Manchester synagogue, activity in the European stock markets, and updates on EU sanctions against Russia dominated headlines.

Manchester synagogue attack and police response

In a tragic incident during Yom Kippur, two men were killed at a Manchester synagogue, and police revealed that at least one victim may have been accidentally shot by officers intervening to stop the attacker.

The assailant, 35-year-old Jihad Al-Shamie, a British citizen of Syrian descent, used his car to ram pedestrians outside the synagogue before moving inside and stabbing congregants.

Armed police shot and killed the attacker just three minutes after the attack began.

The victims, 53-year-old Adrian Daulby and 66-year-old Melvin Cravitz, were longtime members of the Heaton Park Hebrew Congregation.

Several others were injured in the chaos, including from gunfire, stabbing, and vehicle impact.

Greater Manchester Police Chief Constable Stephen Watson expressed regret over the accidental shooting of worshippers but emphasized that officers had to act quickly to prevent further loss of life.

Prime Minister Keir Starmer visited the synagogue to offer support, emphasizing security, unity, and vigilance against hate crimes.

European stock market performance

European equity markets traded mostly higher on Friday as investors assessed services sector activity and producer prices across the Eurozone.

The FTSE 100 advanced 0.67% boosted by a 4.45% gain in Bunzl.

The CAC 40 rose 0.31%, with Kering climbing 3.82%, while the Euro Stoxx 50 improved 0.10% and Sanofi gained 2.07%.

The DAX was an exception, falling 0.18% as Siemens Energy dropped 2.21%.

In currency markets, the Euro strengthened 0.24% against the US dollar to $1.17435, while the pound rose 0.28% to $1.34779.

Investors are closely monitoring developments in the Middle East following statements from US President Donald Trump regarding peace proposals for Gaza.

French budget draft rejected

In France, political tensions remain over the national budget.

French Socialist Party leader Olivier Faure criticized Prime Minister Sébastien Lecornu’s draft budget, calling it “very inadequate” and insufficient in addressing tax policies for the ultra-rich.

Faure highlighted that while some taxes are being reduced and others created, the draft fails to fundamentally change fiscal responsibility, leaving ordinary citizens to bear the burden.

Ukrainian drone strike on Russian refinery

The Ukrainian Security Service reported that its Central Operational Command A successfully struck the Orsk oil refinery in Russia using long-range drones, covering 1,400 km.

The refinery produces around 30 types of oil products with an annual capacity of 6.6 million tons.

These attacks follow previous Russian strikes on Ukrainian military and infrastructure sites in Kharkiv and Poltava regions.

EU extends sanctions against Russia

The European Council announced an extension of sanctions against Russian individuals and entities responsible for destabilizing activities abroad until October 9, 2026.

The measures include asset freezes, travel bans, and prohibitions on providing funds or economic resources.

Introduced in 2024 and expanded in 2025, these sanctions target hybrid threats to EU security and include provisions against Russian media involved in disinformation campaigns.