European stocks rise, supported by hopes of economic stimulus in China

European stocks rose on Friday after weak factory activity data in China boosted hopes for more stimulus policies, while investors awaited key inflation data to look for other clues about the direction of global interest rates.

The pan-European Stoxx 600 index was up 0.3 percent by 0703 GMT.

The index was supposed to make limited gains at the end of the quarter, with mounting evidence of weakness in China’s post-COVID-19 recovery and concerns that prolonged global interest rate hikes capped the stock rally that began early this year.

The index is set to gain 1.4 percent on a monthly basis.

Mining stocks rose 0.7 percent on higher metal prices, as lower factory activity in China fueled expectations that the country would increase economic stimulus. Energy companies also provided support for the index on Friday.

Investors are now awaiting US PCE data for May as well as preliminary inflation figures in the Eurozone later on Friday.

Among individual stocks, sportswear maker Adidas fell 1.7 percent. Puma, which operates in the same field, fell 0.3 percent after a bleak outlook from Nike.