European Shares Extend Gains On French Budget Optimism

(RTTNews) - European stocks traded higher for a seventh straight session on Friday amid optimism that a new French budget could be passed within a matter of weeks.

French President Emmanuel Macron said he will appoint a new prime minister in the coming days and will get the 2025 budget adopted by parliament.

Meanwhile, investors also awaited the release of U.S. payrolls data later in the day that could alter the odds of a Federal Reserve rate cut later this month.

Closer home, Germany's industrial output decreased unexpectedly in October on weak energy and auto production, official data revealed.

Industrial output registered a 1.0 percent decrease in October, data from Destatis showed - darkening economic outlook. The decline confounded expectations for an increase of 1.0 percent.

On a yearly basis, industrial production slid 4.5 percent after a 4.3 percent fall.

Elsewhere, Halifax reported that Britain's property sector gathered more pace in November, with house prices rising by a faster-than-expected 1.3 percent in November from October, the biggest increase this year.

On an annual basis property prices were up 4.8 percent, the highest rate of increase since November 2022.

The European Central Bank (ECB) meets next Thursday for the last time in 2024 and economists overwhelmingly expect another 25-basis-point rate cut - which would be the fourth such move this year.

The pan European STOXX 600 was up 0.2 percent at 520.60 after rising 0.4 percent on Thursday.

The German DAX gained 0.2 percent and France's CAC 40 rallied 1 percent while the U.K.'s FTSE 100 was marginally lower.

In corporate news, Direct Line Insurance shares jumped nearly 7 percent in London.

The Insurer said it will recommend a sweetened £3.61 billion takeover bid from Aviva, valuing the company at 275 pence per share. Aviva shares were down half a percent.

Housebuilder Berkeley Group fell 1.4 percent after reporting a fall in half-year profits.