European stocks head for weekly gains on strong earnings

European stocks rose on Friday, heading for a positive end to a week full of data, as strong business results and hopes that the European Central Bank is close to cutting interest rates boosted investors’ appetite for high-risk assets.

According to Reuters, the European Stoxx 600 index rose 0.5% by 0808 GMT to record the highest level in two years, and mining company stocks led the gains with a jump of 2.2% so far this week.

The British FTSE 100 index outperformed its European counterparts and rose 0.8%, with British retail sales recording a stronger-than-expected increase of 3.4% in January after falling 3.3% in the previous month.

In another boost to morale, European Central Bank member and President of the Bank of France, François Villoroi de Gallo, said there are many compelling reasons why the European Central Bank should not delay for too long in starting to cut interest rates this year.

Metso shares jumped more than seven percent after the Finnish mining equipment manufacturer reported an increase in fourth-quarter profits and announced optimistic forecasts for its assembly unit.

NatWest shares fell 0.7% despite the British Bank announcing profits that exceeded expectations for 2023. The bank is preparing for a major sale of state-owned shares in the institution after a year that witnessed a scandal.

Belgian shares of Umicor also fell 4.2% to the bottom of the STOXX 600 index after the company expected a decline in core profits in 2024.