European Stocks Bounce Back Amid Economic Shifts

European stocks climbed to over a one-week high despite initial downturns, as focus shifted to China's stimulus plans, corporate earnings, and ECB interest rate decisions. The STOXX 600 index gained 0.5%, with various country indices also seeing increases. Investors remain cautious, anticipating further economic updates.

European stocks surged past early losses on Friday, attaining heights unseen in over a week. This upward march was spearheaded by updates from China about potential economic stimulus, corporate earnings, and an upcoming European Central Bank interest rate decision.

The STOXX 600 index rose by 0.5%, marking a positive week with 0.6% gains. The trading week, however, was not without turbulence as Shanghai markets wavered over policy support uncertainties, oil prices spiked due to Middle Eastern tensions, and there were increases in U.S. inflation data.

Britain's FTSE 100 saw modest gains of 0.2%, while Germany's DAX and Spain's IBEX climbed 0.7% and 0.5% respectively. Meanwhile, France's CAC 40 reversed early dips, buoyed by a national budget plan aimed at slashing 60 billion euros in spending and increasing taxes for the wealthy.

(With inputs from agencies.)