Euro Stocks Edge Up Amid Rate Hike Concerns

European stocks rose modestly on Friday, positioning for their steepest weekly drop in two months. The pan-European STOXX 600 index gained 0.4% to 638.63 points by 0837 GMT.

The markets had fallen to a two-month low the previous day after the European Central Bank hiked rates amid rising energy prices, exacerbated by ongoing Middle East conflicts.

Soaring global bond yields and concerns over future rate hikes further complicated the financial landscape. Investor focus remains on upcoming U.S. inflation data, which could influence the Federal Reserve's interest rate stance.