Zurich Insurance falls 3.6 on exdividend trade
SocGen up on 795 mln unit sale in Morocco
Varta slumps as its restructuring plans would fail
Euro hits fivemonth low
STOXX 600 gains 1.1

April 12 Reuters European shares rose to over a week39;s high on Friday, with major indexes that use the euro as the common currency trading in the green, as investors turned optimistic after the European Central Bank hinted that it could begin interest rate cuts as soon as June.

The panEuropean STOXX 600 gained 1.1, while the bluechips index gained 1 as of 0850 GMT.

Stocks in major regional economies, such as Germany, France, Spain and Italy, gained more than 1 each.

Obviously, with the ECBs comments yesterday, everyone39;s assuming it is 100 guaranteed that a June rate cut is going to happen, said Gene Salerno, chief investment officer at SG Kleinwort Hambros.

The basic resources index led sectoral gains, with its 2.8 rise, its fifth straight week in gains, tracking an uptick in base metals prices. The banking index was the worst performer for the week.

Salerno added that signs of economic stabilisation in the euro zone and trading partner China have helped gains in cyclical sectors such as resources.

After a broadly lacklustre week, the STOXX 600 is on course for a weekly gain of 0.7 after the ECB hinted that interest rates could be lowered, as early as June, while uncertainty remained if the regulator could kick off the easing cycle before the U.S. Federal Reserve….