STOXX 600 Rises Amid Euro Zone Growth, Inflation Concerns Persist

European stocks rose on Friday, but the benchmark index still ended the week lower due to inflation concerns. The pan-European STOXX 600 closed 0.59% higher at 654.18 points.

The recent jump in U.S. long-term bond yields had unsettled global investors and dented risk appetite, but a robust earnings season has supported risk appetite in Europe. The region's economy is showing signs of resilience despite the Middle East conflict due to its limited exposure to oil trade and a clearer monetary policy outlook.

The euro zone business activity is growing at its fastest pace this year thanks to new orders in manufacturing and renewed export growth, data showed on Friday. S&P Global's Flash Euro zone Composite PMI Output Index reached its highest since November this month.