Europe Stocks Rise, But Inflation Concerns Persist

European stocks rose on Friday, August 21, but still ended lower for the week due to inflation concerns.

The pan-European Stoxx 600 index closed at 654.18 points, a 0.6% gain from the previous day's close, its second straight weekly decline.

Despite this, some sectors showed resilience, with luxury stocks gaining 1.4% and basic resources rising 2.5%, as a softer dollar lifted gold prices.

The European economy is showing signs of growth, with business activity in the Eurozone growing at its fastest pace this year, driven by new orders in manufacturing and renewed export growth.