European stock markets closed higher on Friday as the Ukraine-Russia conflict escalated after Russian President Vladimir Putin signed today the official treaties to annex four new Ukrainian territories in the Russian Federation. The European Council stated that the bloc will never recognize the "illegal annexation," and the US and its allies imposed new sanctions against Moscow.

The new escalation comes on top of the bloc's already uncertain situation regarding the energy crisis and a possible economic recession. Investors knew today that the annual inflation rate in the Eurozone (EA19) stood at a record 10% in September, while the Euro area unemployment remained unchanged at 6.6% in August.

The DAX gained 138 points or 1.16% at 5:30 pm CET, with Siemens Healthineers up by 5.95%. The CAC 40 added 1.51%, while WFD Unibail Rodamco improved by 6.44%. The FTSE 100 rose 0.15%, as Barratt Developments increased by 6.00%.

The euro was down by 0.15% against the dollar at 5:28 pm CET, selling for $0.98002. In comparison, the pound was up by 0.23% to go for $1.11448 at the same time.