European stocks open higher as investors flock to energy stocks

European stocks opened higher on Friday, after falling for two consecutive days, as investors snapped up falling energy stocks, although comments about monetary tightening from more Federal Reserve officials capped gains.

According to “Reuters”, the European Stoxx 600 index rose 0.4 percent by 0813 GMT, with shares of the basic resources sector rising 1.1 percent, after falling more than 3 percent in the previous two sessions.

The banking sector also rose 0.3 percent as the European Central Bank prepared to start the largest cash withdrawal from the eurozone banking system in its history, as banks are expected to repay about 500 billion euros of targeted long-term refinancing loans.

Rate-sensitive technology stocks fell 0.6 percent after St. Louis Federal Reserve Bank President James Bullard said interest rates need to be between 5 and 5.25 percent, up from the current level of less than 4 percent, to be sufficient curb inflation.