(RTTNews) – European stocks traded higher on Friday, with banks rising on investor optimism that the U.S. Federl Reserve will deliver more interest-rate cuts in 2026.
In economic news, the U.K. economy contracted for the second straight month in October, the Office for National Statistics reported.
Gross domestic product fell unexpectedly by 0.1 percent month-on-month in October, the same pace of drop as seen in September. GDP was forecast to grow 0.1 percent.
On an annual basis, GDP was up 1.1 percent in October, which was weaker than forecast of 1.4 percent.
Separate set of data revealed that the visible U.K. trade deficit widened to GBP 22.5 billion in October from GBP 18.9 billion in September.
Elsewhere, German inflation rose to 2.6 percent in November, the federal statistics office said, confirming preliminary data.
The pan European Stoxx 600 rose half a percent to 584.45 after rising 0.6 percent on Thursday.
The German DAX surged 0.6 percent, France’s CAC 40 climbed 0.7 percent and the U.K.’s FTSE 100 was up half a percent on news the lender is in talks to sell its 67 percent stake in its Moroccan unit BMCI to Holmarcom Group.
Spanish multi-energy group Repsol edged up slightly after it agreed to sell a 43.8 percent stake in Outpost solar project in Texas to investment firm Stonepeak for $252.5 million or 220 million euros.
Britan’s Aberdeen gained 1 percent after it struck a deal to take over the management of closed-end fund assets totaling £1.5bn from long established U.S. fund manager MFS.
Harbour Energy soared 5.5 percent after it agreed to acquire most subsidiaries of Waldorf Energy Partners and Waldorf Production for $170 million.
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