European stocks head for second weekly gain

European shares rose on Friday and were hovering near a nine-month high, supported by healthcare and banking stocks and upbeat economic data from the UK.

The pan-regional STOXX 600 (.STOXX) gained 0.6% by 0918 GMT, with investors looking ahead to earnings from big U.S. banks.

UK’s FTSE 100 (.FTSE) added 0.6% after data showed the British economy eked out 0.1% growth in November, helped by a boost from World Cup drinkers and video game sales, reducing the chance that it has already slipped into recession, reported Reuters.

In Germany, data showed the economy likely stagnated in the final quarter of last year and grew by 1.9% over the full-year 2022, suggesting Europe’s largest economy may just escape a recession over the winter.

European shares were headed towards a second straight weekly gain, in an upbeat start to January and the new year, after data signalled a slowdown in inflation in the euro zone and the US, which could allow central banks to slow the pace of their monetary policy tightening.