STOXX 600 up 0.7 at 0827 GMT, up 2 this week
Tech, industrials, luxury biggest boosts
Energy weighs on London39;s FTSE 100 as oil falls
Britain may need more stimulus analyst

May 27 Reuters European shares extended gains for a third straight session on Friday and were set for their biggest weekly jump in more than two months, as easing bets about aggressive interest rate hikes by central banks lifted sentiment.

The panEuropean STOXX 600 index rose 0.7 by 0827 GMT, tracking an overnight Wall Street rally and gains in Asia.

Technology, industrial and luxury stocks were among the biggest boosts to the STOXX 600, while miners, up 1.8, led gains among sectors.

For the week, the index was seen closing around 2 higher, its biggest weekly jump in 10. Banks were among the best performers this week, up around 5, as major central banks stayed on course to hike interest rates.

Market volatility earlier this week due to speculations about monetary policy was put to rest after the U.S. Federal Reserve signalled it could pause after 50 basis points hikes in the next two months. The European Central Bank said it was set to begin its hiking cycle in July.

Markets feel a little happier that they know where things are going to go, and also that there39;s going to be a real focus from central banks to make sure that they do take a measured approach… to create this soft landing to prevent economies from going into recession, said Danni Hewson, financial analyst at AJ Bell….