European shares steadied on Friday after three sessions of gains put them on track for a weekly rise, while investors awaited a key U.S. inflation reading.
The pan-European STOXX 600 index (.STOXX) rose 0.2% to 580.16 as of 0853 GMT, near a three-week high.
Germany’s DAX (.GDAXI) and France’s CAC 40 (.FCHI) added 0.5% and 0.2%, respectively.
Investors awaited the delayed U.S. personal consumption expenditure report for September, due later on Friday, which could shape the Federal Reserve’s approach to monetary policy easing.
Recent data and dovish remarks from some Fed policymakers have strengthened expectations for a rate cut next week.
"While it will help us to gain a more complete picture of the U.S. inflation landscape, this data is very backward looking so as long as it is roughly in line with expectations, the rally could continue," said Kathleen Brooks, research director at XTB.
"The last two weeks of the year are typically strong for equities, and there could be a fear of missing out on some extra gains before year end."
In Europe, industrial stocks (.SXNP) jumped 0.4%, the biggest boosts to the index, while basic resources (.SXPP) advanced 1.1%, the biggest gainers on the index, after copper prices hit a record high.
Automobile stocks (.SXAP) were among the biggest gains on the index on Thursday, after BofA Global Research upgraded some stocks within the sector.
Swiss Re (SRENH.S) fell 5% after the reinsurer announced its targets for 2026, below analysts' expectations. Big Yellow Group (BYG.L) dropped 5.4% after terminating talks of a potential deal with Blackstone (BX.N).
Ocado (OCDO.L) topped the index with a 8.5% rise. The online supermarket technology firm will receive a one-off $350 million cash payment from Kroger (KR.N) as the U.S. grocer decided to close three robotic warehouses and cancel a planned facility.
UCB (UCB.BR) gained 4.5% after the biopharmaceutical group raised its guidance for 2025.
Markets will also keep an eye on the pensions bill vote in the German parliament, that will test Chancellor Friedrich Merz's coalition control, with its passage likely relying on opposition abstention after a revolt by younger conservatives.
