European Stocks End Second Week of Gains

According to Trading Economics, European stocks recorded a slight increase, concluding a second week of gains as markets continue to assess interest rate expectations for the coming year, with yields linked to rising spending on artificial intelligence, alongside the prospects of reaching a ceasefire between Russia and Ukraine.

The STOXX 50 index rose by 0.1% to 5,726 points, achieving a weekly gain of 1%, while the STOXX 600 index closed virtually unchanged at 579 points but recorded a weekly gain of approximately 0.4% compared to last Friday.

New economic data from the United States continued to support expectations for the Federal Reserve to cut interest rates next week, while positive revisions to the labor market in the Eurozone aligned with the European Central Bank's indication to keep interest rates unchanged for now.

The automotive sector showed strong performance for the second consecutive session, with shares of Mercedes-Benz, Volkswagen, BMW, and others rising between 2% and 4%.

In contrast, the performance of companies linked to AI infrastructure was mixed, as Schneider, ASML, and Nokia recorded losses, while Infineon continued to achieve gains.

Both Rheinmetall and Leonardo ended the week's trading on a high note amid optimism for potential progress towards an agreement to end the war in Ukraine.