© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, January 15, 2024. REUTERS/Staff/File Photo
(Reuters) – European shares opened higher on Friday, boosted by gains in financials, although the benchmark index was on course for a weekly decline after investors tempered their rate-cut expectations on policymakers’ hawkish remarks.
The pan-European index was up 0.4%, as of 0818 GMT, extending gains from the previous session.
Most major sector indexes traded in the black, with euro zone banks adding 0.6%, propped up by a nearly 3% jump in KBC Group (OTC:) after Morgan Stanley raised the Belgian integrated bank-insurance group’s rating to “overweight” from “equal-weight”.
Still, hawkish remarks from European Central Bank policymakers prompted traders to scale back their bets of a rate cut, putting the benchmark index on course for a weekly loss. [0#ECBWATCH]
On the data front, German producer prices fell more than expected in December, decreasing 8.6% year-on-year, although the blue-chip 40 index was up 0.4%.
Among other major movers, Teleperformance gained 4.7% after Stifel upgraded the teleservices firm’s rating to “buy” from “hold”.