Blue chips support European stocks amid interest rate cut hopes

European stocks opened higher on Friday, buoyed by gains in blue-chip stocks, while investor sentiment remained positive following hints from the European Central Bank (ECB) indicating a potential interest rate cut in June.

The European STOXX 600 index surged 0.9 percent, poised to achieve a weekly gain of 0.4 percent, while the leading stock index climbed 1.1 percent.

The Basic Resources Index led sector gains, advancing 2 percent, supported by a slight increase in basic metal prices.

Shares in major economies across the region, including Germany, France, Spain, and Italy, saw gains ranging from 0.5 percent to 1.0 percent.

However, Varta shares plummeted 32.6 percent to a record low, set to mark its worst daily performance since September 2022. The decline came after the German battery maker announced that its restructuring plans were unlikely to achieve profitability by 2026.

In the United Kingdom, the Financial Times 100 index rose 0.8 percent following data indicating that economic output in the UK grew for the second consecutive month in February, with the January reading being revised upward.