European stocks saw modest gains on Friday as investors responded positively to China's new stimulus measures aimed at bolstering its property sector, while also considering the implications for future interest rates.
European sovereign bond yields climbed after ECB Governing Council member Martins Kazaks suggested in a Bloomberg Adria interview that June might be an appropriate time to begin reducing borrowing costs, though he emphasized that any future actions would heavily depend on incoming data. He stressed that any rate reductions should be "cautious" and "gradual" and that there should be no haste in the process.
In a separate development, ECB executive board member Isabel Schnabel cautioned against consecutive interest-rate cuts in June and July. "Based on current data, a rate cut in July does not seem warranted as there is a risk of easing prematurely," she told the Nikkei newspaper.
Meanwhile, U.S. Fed Governor Michelle Bowman stated on Friday that she has observed no progress in controlling inflation this year and remains open to raising rates if improvements stall or regress.
The pan-European STOXX 600 inched up 0.1 percent to 523.50, following a 0.1 percent decline on Thursday. The German DAX advanced 0.3 percent, while France's CAC 40 and the U.K.'s FTSE 100 both gained approximately 0.2 percent.
In the commodities sector, Antofagasta's shares increased by 0.5 percent and Glencore's by 1.3 percent as copper prices hit record highs due to the fresh Chinese stimulus designed to buoy the property market.
Oil and gas giant BP Plc saw its shares rise by 0.8 percent, and Shell added 0.5 percent as oil prices climbed amidst uncertainty in major producing countries.
Shares of Keywords Studios soared by 62 percent following reports that the company is in discussions with European private equity firm EQT Group regarding a potential cash offer valued at 2,550 pence per share.
On the downside, British Land's shares fell by about 1 percent after selling its stake in the Meadowhall Shopping Centre in Sheffield, U.K. for £360 million to Norges Bank Investment Management.
Budget airline Ryanair Holdings dipped 0.8 percent despite reporting a 34 percent year-over-year increase in annual profit.