The Stoxx 600 provisionally closed up 1.1%, paring losses from the last two sessions to end the week higher than it began.
Retail and auto stocks both added nearly 2% to lead gains as almost all sectors ended the session in positive territory.
Global markets took some heart from lower-than-expected consumer and wholesale inflation prints last week, prompting bets that the central bank would have to slow its aggressive interest rate hikes.
However, St. Louis Fed President James Bullard said Thursday that “the policy rate is not yet in a zone that may be considered sufficiently restrictive.”
Bullard suggested that the terminal federal funds rate could reach the 5% to 7% range, higher than the market is currently pricing.
Global investors are closely tracking key economic data points for hints as to how central banks around the world will act as they look to rein in inflation.
The European blue chip index closed lower in the previous session amid the fallout from a missile hitting Polish territory. Meanwhile, the U.K. announced a new fiscal strategy centered on tax hikes and spending cuts as the government looks to plug a massive hole in its public finances.
U.S. stocks also climbed in morning trade, though shares in Asia-Pacific were also uncertain as Japan’s core consumer price index for October rose at its fastest annual pace in 40 years.
