European stocks inched up to record a second straight week of gains, as markets continued to assess the rate outlook for next year, returns on soaring AI capital expenditure, and the likelihood of a ceasefire between Russia and Ukraine.
The STOXX 50 inched up 0.1% to 5,726, a 1% gain on the week, while the STOXX 600 closed flat at 579, a 0.4% gain from last Friday.
Fresh economic data from the US maintained the outlook of a Fed rate cut next week, while upward revisions on the Eurozone’s labor market was consistent with the ECB’s signal that rates should remain unchanged for the meantime.
Auto manufacturers were firmly higher for a second session, with Mercedes Benz, Volkswagen, BMW, and Volkswagen adding between 4% and 2%.
Meanwhile, companies with exposure to AI infrastructure were mixed with Schneider, ASML, and Nokia recoding losses, while Infineon extended gains.
Also, both Rheinmetall and Leonardo ended the week higher on eased hopes of an agreement to end the war in Ukraine.