European stocks touch 3-week high after interest rate hike fears subside

European stocks hit a three-week high on Thursday, supported by a new round of decline in government bond yields and investor relief due to dovish comments from Federal Reserve officials.

The European STOXX 600 index rose 0.6 percent by 0711 GMT, with the mining and car manufacturing sectors leading the gains.

Wall Street closed higher on Wednesday after the minutes of the US Federal Reserve’s latest meeting showed caution among policymakers, which contributed to raising hopes for stable interest rates.

The focus now turns to US inflation data due later on Thursday.

Asian stocks also witnessed gains after a state fund in China increased its stake in the country’s largest banks.

Ericsson shares rose despite the Swedish telecommunications equipment company announcing impairment charges amounting to 32 billion kroner ($2.9 billion).

Publicis, the world’s largest advertising group, rose 3.7 percent after the company raised its forecast for 2023 sales and margins.

In Britain, Restaurant Group shares jumped 36.9 percent after an arm owned and managed by Apollo Global announced the acquisition of the group that owns Wagamama restaurants for 506 million pounds ($623.4 million) in cash.

The shares of the German company Südtsücker, the largest sugar producer in Europe, rose 4.4 percent after it raised its full-year profit expectations.