European stocks rise 0.3% to 637.60 points as bond yields near record levels
The pan-European STOXX 600 index climbed slightly before Friday's U.S. inflation data release, despite high energy costs and hawkish Central Bank guidance.
European stocks gained 0.3% on Friday, reaching 637.60 points by 0716 GMT. The pan-European STOXX 600 index closed the previous session at a two-month low. The European Central Bank raised rates as expected on Thursday and warned that inflation could rise further due to surging energy prices driven by the Middle East conflict. Oil prices stayed above $100 a barrel for three consecutive days. This outlook fueled expectations for additional rate hikes, pushing government bond yields higher globally. The U.S. 10-year Treasury yield remained just below 5%. Germany's 10-year government bond yield also held near multi-decade highs. Investors are now focused on Friday's consumer price inflation data from the United States. These figures may reveal new insights regarding Federal Reserve policy. Despite the gains, analyst reports indicate European markets remain on track for their worst weekly performance since April.
