Airbus lands record orders in 2023, shares up
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Jan 12 Reuters European shares climbed on Friday as investors overlooked an escalation in the conflict in the Middle East and cheered interest rate cut prospects from the European Central Bank ECB, while shares of Airbus rose on record annual jet orders.

The panEuropean STOXX 600 was up 0.9 by 0934 GMT, after a 0.8 drop in the previous session. The index is also on track to eke out marginal weekly gains.

ECB President Christine Lagarde said on Thursday the hardest and worst bit regarding inflation was likely over and that interest rates would be cut if inflation falls to the 2 level.

Ratesensitive real estate stocks rose 1.8, leading sectoral gains, while technology index was up 1.2.

Investors have priced in at least five rate cuts in 2024, with traders seeing about a 30 chance of the first move coming in March. 

There are expectations that inflation is heading in the right direction, said Susannah Streeter, senior investment and markets analyst at Hargreaves Lansdown.

And Christine Lagarde39;s emphasis that we39;re over the hardest and worst in terms of inflation and the fact that we have really passed peak rates certainly has been encouraging.

Oil and gas shares added 1.3, on a more than 2 rise in crude prices, following strikes carried out by the United States and Britain against Houthi military targets in Yemen,…