European stocks rise 0.3% to 637.60 as ECB hints at aggressive rate hikes amid oil prices over $100
The pan-European STOXX 600 index gained 0.3% while investors await critical U.S. inflation figures that could confirm fears of further monetary tightening driven by surging energy costs.
European equities rose on Friday despite lingering pressure from rising bond yields and warnings from the European Central Bank regarding persistent inflation. The pan-European STOXX 600 index advanced 0.3% to reach 637.60 points at 0716 GMT, following a session that ended at a two-month low the previous day. This positive movement occurred as oil prices surpassed $100 per barrel for a third consecutive day, contributing to broad concerns about rising consumer costs and potential policy tightening by central banks globally. The ECB had previously raised interest rates but signaled that energy price surges driven by conflict in the Middle East may drive inflation higher. Consequently, government bond yields across Europe climbed, with Germany's 10-year yield remaining near multi-decade highs and the U.S. 10-year Treasury yield hovering just below the 5% mark. Market attention now shifts to U.S. consumer price data due later Friday, which could clarify whether aggressive rate hikes are necessary to combat current inflation trends.
