The European STOXX 600 index closed up 1 percent to its highest levels since August, after recording monthly gains of 6.4 percent in November.
It closed higher for the third week, supported by weekly gains in the real estate sector, which is highly sensitive to interest rates.
Euro zone bond yields extended their losses after the release of weak manufacturing data in the United States and comments from Jerome Powell, Chairman of the US Federal Reserve, supporting hopes that lowering interest rates may occur in the first quarter of next year.
Goldman Sachs expects the European Central Bank to implement its first interest rate cut in the second quarter of 2024, compared to a previous expectation of implementing the cut in the third quarter of next year.
The mining sector topped sector gains on Friday, rising 4.2 percent, tracking the impact of rising metal prices thanks to the decline in the dollar and supportive data from China, a major consumer.
Signify Lighting shares rose 4.9 percent as the world’s largest lighting manufacturer announced a new organizational structure to reduce costs.
While the shares of the Swedish video streaming service company ViaPlay fell 74.4 percent to a record low due to plans to restructure its debts.
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