European stocks rise on Fed relief, China demand rebound

European shares rose on Friday, as hopes that the US Federal Reserve could adopt a measured approach for rate hikes ahead lifted technology stocks, while miners jumped on growing bets of demand recovery in China.

The continent-wide STOXX 600 (.STOXX) rose 0.7% in early trading, with rate-sensitive tech stocks (.SX8P) up 1.4%.

Overnight, Atlanta Fed President Raphael Bostic favoured a “slow and steady” rate hike moving forward and a pause by mid- or late-summer, reported Reuters.

Policy meetings from both the Fed and the European Central Bank (ECB), and U.S. jobs data are on tap for the next two weeks, while China’s annual parliament session is on Sunday when Beijing will set its economic goals for the year.

Mining stocks (.SXPP) rose 2.0% as prospects of China’s reopening shoring up demand was a theme that played out for much of the week after the country’s data pointed to improving economic conditions.

The mining index was set to rise nearly 7% this week, tracking its biggest weekly gain since May 2021, and outpacing other major sectors. The broader STOXX 600 index was set to gain 1% for the week.