The pan-European STOXX 600 index added 0.5% to reach a two-year high, led by miners, which climbed 1.7% so far this week
European shares jumped on Friday, on track to end a data-packed week on a positive note, as stellar earnings updates and hopes of imminent rate cuts by the ECB lifted investors’ appetite for risky assets.
The pan-European STOXX 600 index added 0.5% to reach a two-year high, led by miners, which climbed 1.7% so far this week.
The STOXX index of 50 biggest companies hovered around its highest level in 23 years, while a gauge of euro zone blue-chip shares reached an all-time high.
German and French stocks extended gains on Friday to reach another record high.
UK’s FTSE 100 outperformed regional peers for the day with a 0.7% rise after British retail sales increased by a stronger-than-expected 3.4% in January, from the prior month when they dropped by 3.3%.
Today’s numbers show that the increase in retail sales was still driven by increased prices, with consumers actually buying less stuff now than they were before the pandemic, said Michael Field, European Market Strategist at Morningstar.
Boosting sentiment, European Central Bank member and Bank of France head Francois Villeroy de Galhau said there are several compelling reasons why the ECB should not hold off for too long on an initial rate cut this year.
Meanwhile, ECB policymaker Isabel Schnabel said Europe’s sluggish productivity growth may slow the drop in inflation to the ECB’s 2% target.
Shares of Metso Corp climbed 8.3% after the Finnish mining equipment maker reported a Q4 profit beat and gave an optimistic outlook for its aggregates unit.
NatWest added 1.9% as the British bank posted a forecast-beating profit for 2023. NatWest gears up for a crunch sale of state-owned stock in the company after a scandal-hit year.
