European stocks edged higher on Friday but remained on track for their worst weekly performance since April, as elevated bond yields and fears of aggressive rate hikes weighed on sentiment ahead of key U.S. inflation data. The pan-European STOXX 600 rose 0.3% to 637.60 points, a day after closing at a two-month low following a hawkish European Central Bank rate decision.
The pan-European STOXX 600 rose 0.3% to 637.60 points by 0716 GMT on Friday. Even so, the index headed for its worst weekly performance since April.
The index closed at a two-month low on Thursday after the European Central Bank raised interest rates as expected. The bank warned of higher inflation as energy prices soar in the wake of a prolonged Middle East conflict, and oil prices were trading above $100 for a third day.
The ECB's hawkish stance has prompted calls for further interest rate hikes, and government bond yields across the globe have surged as a result. The U.S. 10-year Treasury yield, a benchmark for global borrowing costs, hovered below the closely watched 5% level, while the German 10-year yield stayed near multi-decade highs.
Investor attention will next turn to U.S. Consumer Price Index figures due later in the day, which could provide fresh signals on the Federal Reserve's interest rate path ahead of a monetary policy meeting next week. Among individual stocks, Italian semiconductor testing company Technoprobe jumped 4.7% after its customer TSMC posted strong August revenue.
Source: Investing.com
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