European stocks rise but log sharp weekly loss on inflation fears

Key facts

• European stocks edged higher on Friday.
• The pan-European STOXX 600 recorded its steepest weekly fall since early July.
• The European Central Bank raised interest rates.
• The ECB warned inflation could remain higher for longer due to surging energy prices.

European stocks edged higher on Friday as oil prices retreated from a five-month peak, following a week marked by accelerating inflation expectations and elevated bond yields. The pan-European STOXX 600 logged its steepest weekly fall since early July after the European Central Bank raised interest rates and warned inflation could remain higher for longer due to surging energy prices.