The STOXX 600 increased 1.1%, led by gains in the oil, gas and retail sectors.
But the benchmark index lost 0.5 percent in the week’s transactions, amid a rise in commodity prices and signs of an acceleration in US inflation, stoking fears of a faster-than-expected rate hike for the Fed.
However, sentiment improved after reassurances from the Reserve Board regarding monetary policy, and saying that it would not be in a hurry to reduce the liquidity injection that supports the financial markets.
While price increases are not a big problem in the Eurozone, investors have drawn the trend from the US market for most of the week. But analysts say Europe remains attractive to global investors.
“We’re looking at valuing markets, and valuations have been in Europe’s favor for a number of years because they are more economically sensitive,” said Geoffrey Germain, investment group manager at Brandis Investment Partners.
The share of the French group Danone for food industries fell 0.3 percent after Goldman Sachs reduced its recommendation for the stock to “sell”, saying that negative demographic factors, especially in China, were pressuring its activities in the field of specialized food.
Atlantia slipped 0.2% after the Italian infrastructure group reported a first-quarter net loss and confirmed it would make a decision to sell its stake in its Autostrade highway unit by June 11.
Japanese stocks recorded their biggest weekly losses in nine months, as investors were reluctant to make big bets in light of the return of the Corona virus infection rate to the increase and inflation concerns in the United States, despite the slight increase during the day supported by positive business results for companies.
The Nikkei index closed up 2.32 percent to 28,084.47 points today, while the broader Topix index rose 1.86 percent to 1,883.42 points.
On a weekly basis, the Nikkei was down 4.3 percent, its biggest loss since the week ending July 31, 2020.
Technology stocks led the gains Friday, as investors searched for deals after a global selloff in the sector.
Risk appetite was limited this week by investor concerns about the slow distribution of COVID-19 vaccines in Japan and further restrictions on business activities.
Toshiba Corp. was one of the biggest gainers, rising 0.89 percent after the industrial group said it expects a 63 percent increase in annual operating profit in the current fiscal year.
But the stock erased some of the gains after one of its units said its European business had come under a cyber attack.
US stocks closed strongly higher at the end of a broad rally, Thursday, rebounding after losses for three consecutive days, after labor market data that gave cause for optimism.
The three major indexes snapped strong gains, but the Nasdaq fell behind under the weight of the poor performance of Tesla stock.
Meanwhile, stocks of companies linked to the economic cycle made the largest gains.
Recent economic data has fueled inflation concerns in light of a shortage of raw materials and public hands threatening to raise prices amid a demand boom.
“If this were a running race, supply chains would still tie the shoes … but they would catch up very quickly,” said David Carter, director of investment at Linux Wealth Advisors in New York.
However, investors today seemed preoccupied with the half full cup of the supply and demand equation.
This was evidenced by the outperformance of the stocks of small companies, chip makers and transportation companies, all of which are sensitive sectors of the economy, which are expected to benefit as the United States emerges from the recession caused by the pandemic.