According to Jinshi Data on September 14, European stocks rose on Friday, with the best performance in a month this week. The Danish stock market hit a record high, thanks to Novo Nordisk's surge this year.
While there were few catalysts on Friday, investors said the focus remained on the trajectory of U.S. interest rates as the Federal Reserve prepares to meet next week.
Barclays strategists Emmanuel Cau and others wrote that they expect European cyclical stocks to bottom out as the market no longer expects large rate cuts and economic data has not fallen off a cliff.
Investors were also studying comments from European Central Bank President Christine Lagarde, who told reporters at a meeting of euro zone finance ministers in Budapest that the ECB was open to considering a rate cut in October if the economy suffered a major setback, following its second rate cut this year.
Florian Ielpo, head of macro research at Lombard Odier Investment Managers, said markets were starting to see that recession risks might be receding a bit given that the ECB was not panicking but was watching slowing growth and persistent core inflation.
