(Reuters) – Media stocks led an advance in European shares early on Friday, setting the index up for strong yearly gains amid rising hopes of a softer monetary policy from major central banks next year.
The pan-European STOXX 600 added 0.2% by 0811 GMT and was on track for its seventh straight weekly gain as well as its best December performance since 2021.
Global markets have rallied since mid-December when the U.S. Federal Reserve hinted that it could consider interest rate cuts next year, however, the European Central Bank (ECB) has not given a similar outlook.
Nonetheless, the STOXX is headed for a near 13% advance this year, with technology and retail among the best-performing sectors.
On the day, media stocks rose 0.6%, while personal and household goods added 0.4% in their first gain in five sessions.
Spanish stocks advanced 0.3% after a preliminary reading showed the 12-month inflation rate fell to 3.1% in December, from 3.2% in the period through November.
Volumes are expected to be light on the last trading day of the year, with bourses across Europe to remain shut on Jan. 1 on account of the New Year holiday.
(Reporting by Shashwat Chauhan in Bengaluru; Editing by Savio D’Souza)
