European Stocks Surge: Positive Chinese Data and Eased Bond Yields Drive Growth

European stocks rose on Friday, spurred by eased bond yields and positive Chinese economic data, marking the STOXX 600's fourth consecutive weekly gain. UK's FTSE 100 hit an all-time high despite weak retail sales, amid broad optimism fueled by U.S. inflation data and earnings from luxury brands.

European stocks climbed on Friday as lower government bond yields and encouraging economic data from China lifted market sentiment, with the STOXX 600 on pace for its fourth consecutive weekly advance.

The STOXX 600 surged by 0.7% by 0930 GMT, poised for over a 2% leap this week, nearing record highs. Automotive stocks rose 1.8%, while construction and materials increased by 1.6%.

UK's FTSE 100 outperformed its European peers, ascending 1% to reach an all-time high. Despite disappointing UK retail sales in December, the likelihood of a Bank of England interest rate cut next month strengthened expectations.

(With inputs from agencies.)