STOXX 600 set to snap fiveday losing streak
Industrials, financials boost index
Credit Suisse gains on capital raise

Dec 9 Reuters European shares inched higher on Friday as gains in industrial and financial stocks on Chinaled optimism offset weakness in the energy sector, while Credit Suisse climbed on news of a capital raise.

The regionwide STOXX 600 index was up 0.1 and appeared set to snap a fiveday losing streak that was largely driven by concerns about an impending global recession due to sharp interest rate hikes by central banks.

Data on Thursday showing a rise in U.S. weekly jobless claims has raised investor hopes that the Federal Reserve could temper its aggressive stance on rate hikes, with China39;s easing of its strict COVID curbs also aiding sentiment.

The next week will be crucial, with interest rate decisions due from the U.S. Federal Reserve and the European Central Bank as investors hope that recent signs of easing price pressures could pave the way for a downshift in the size of interest rate hikes.

The ECB may raise rates by 50 basis points next week, according to a Reuters poll, following two straight 75 basis point increases.

It39;s uncertainty as to what central banks are likely to do in the new year, not next week that39;s prompting a little bit of caution given that most of the economic data that we39;re seeing indicate that we are going to see a bit of a slowdown in economic activity, said Michael Hewson, chief market analyst at CMC…