FX.co ★ European Stocks Close Week Higher

European stock markets edged upwards, securing a second consecutive week of gains, as investors continued to evaluate the monetary policy outlook for the coming year, the returns on burgeoning AI capital investments, and the possibility of a ceasefire between Russia and Ukraine. The STOXX 50 rose by 0.1% to 5,726, marking a 1% increase over the week, whereas the STOXX 600 remained unchanged at 579, achieving a 0.4% rise since last Friday. Recent economic indicators from the U.S. reinforced expectations of a rate cut by the Federal Reserve next week, while positive revisions in the Eurozone's labor market aligned with the European Central Bank's stance of maintaining current interest rates for the time being. Automakers enjoyed a robust performance for the second session, with Mercedes-Benz, Volkswagen, and BMW registering gains between 2% and 4%. In contrast, companies involved in AI infrastructure presented mixed results; Schneider, ASML, and Nokia faced losses, while Infineon continued to advance. Moreover, Rheinmetall and Leonardo both ended the week on a high note amid lessened prospects of an agreement to halt the conflict in Ukraine.