Europe's Stocks Snap Losing Streak as Oil Prices Ease

European stocks are poised to snap their three-week losing streak as oil prices retreated. The pan-European STOXX 600 rose 0.6% to 640.43 points by 0821 GMT, putting it on course for a nearly 1% weekly advance.

The recent losses were largely due to rising bond yields and hawkish signals from central banks. However, the easing of oil prices has helped lift the mood in the market. Energy shares fell 0.7%, but airline stocks advanced as they are sensitive to oil price fluctuations.

Basic resource shares rose 1.14% on gains in Pan African Resources and Glencore PLC. UBS upgraded its rating on Glencore to 'buy' from 'neutral'. The travel and leisure index also rose 1.2%, with Ryanair and Lufthansa gaining more than 2% each.

Despite the positive momentum, investors remain cautious due to ongoing tensions in the Middle East. Negotiators are exploring a phased path out of war that would involve Tehran reopening the Strait of Hormuz and Washington lifting its economic blockade of Iran.