European stocks rise heading for a weekly gain

Energy and mining stocks led European stocks to rise on the last day of a week filled with major central bank decisions on monetary policy, as the US Federal Reserve set the tone for market expectations regarding the prospects for lowering interest rates.

By 0805 GMT, the European STOXX 600 index rose 0.3 percent, heading for its fifth consecutive weekly gain.

The Federal Reserve hinted at lowering borrowing costs in 2024, while a group of central banks in Europe maintained their plans to tighten policy.

However, Francois Villeroy de Galhau, a policymaker at the European Central Bank, indicated on Friday that the bank’s next step should be to cut interest rates.

Barclays expects the European Central Bank to cut interest rates by 25 basis points in April and continue successive cuts at each monetary policy meeting until January 2025.

Shares of mining and energy companies rose by more than 1 percent, topping sector gains.

Shares of Swedish technology company Sectra jumped 15.1 percent after its second-quarter results.