LONDON — European stocks closed higher on Friday as investors continued to digest the European Central Bank's decision to cut rates and looked to next week's Federal Reserve meeting stateside.
The pan-European Stoxx 600 provisionally closed 0.72% higher, with all major bourses and almost all sectors ending the day in positive territory. For the week, the benchmark added 1.09%.
Retail stocks led gains Friday, up 1.84%, while autos added 1.6%. Food and beverage stocks were the sole outlier, dipping by 0.32%.
Shares of French financial services firm Worldline plunged more than 19% at one point after it announced the departure of its CEO and adjusted in full-year guidance amid what it said were "slower trading conditions."
The European Central Bank slashed rates as expected on Thursday, marking its second 25-basis-point cut this year and bringing its key interest rate to 3.5%.
Policymakers gave little indication on the course for monetary policy, however, with President Christine Lagarde saying the bank was not "pre-committing to a particular rate path."
The ECB's meeting comes just days ahead of the U.S. Federal Reserve's Sept. 17-18 meeting, at which it's expected to begin its own rate-cutting cycle.
Money Report
U.S. stocks ticked higher on Friday, with the S&P 500 on track for its fifth straight winning session.
Asia-Pacific markets, meanwhile, finished mixed, as mainland Chinese markets rebounded from a six-year low and Australian markets neared an all-time high.
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Back in Europe, French inflation fell to 1.8% in August in a sign of easing price pressures in the region, fresh data showed Friday.
