European Stocks Soar Amid Fed Speculation, Miners Lead Gains

European stocks achieved weekly gains with miners holding strong. The pan-European STOXX 600 index saw a rise, while investors focused on the U.S. Federal Reserve's anticipated monetary easing. ECB recently lowered its deposit rate, causing investor buzz. However, ECB policymakers cautioned against expecting another cut soon.

European stocks saw an upward trend on Friday, driven by strong performances in the mining sector. Investors are now turning their attention to the U.S. Federal Reserve's upcoming meeting, where an anticipated monetary easing is on the cards.

The pan-European STOXX 600 index rose by 0.5%, reaching 514.4 points. France's CAC 40 also climbed by 0.3% following confirmation that the country's consumer prices increased by 2.2% year-on-year in August. The automobile sector emerged as the top performer, surging 1.5%.

Miners gained 0.8%, buoyed by rising copper prices ahead of a major Chinese holiday. These developments come after the European Central Bank (ECB) decided on a rate cut last Thursday, with policymakers signaling no further cuts in the immediate future.

ECB official Joachim Nagel stated that inflation metrics, including core inflation, are trending positively. Attention is now on the U.S. Federal Reserve, where speculation is rife about the scale of the next rate cut. Investment officials like Gene Salerno and former New York Fed chief Bill Dudley believe there is a strong case for a 50-basis-point reduction.

In the markets, AstraZeneca saw a 2.1% decline following a rating downgrade from Deutsche Bank. Worldline's shares plummeted by 16.5% amid a profit warning and the CEO's departure. Investors are also keenly monitoring Euro zone's upcoming industrial production data and comments from ECB president Christine Lagarde for further cues.

(With inputs from agencies.)