European Equities Extend Multi-Month Highs

European stocks closed cautiously higher on Friday, extending their positive momentum with the Eurozone blue-chip Stoxx 50 advancing 0.3% to a three-month high while the pan-European Stoxx 600 gained 0.4% to a two-month high.

In a Bundesbank event, ECB President Lagarde stated that the central bank reached a point where it can pause tightening and assess the impact of its aggressive tightening cycle on different components of the economy, aligning with previous comments that noted that borrowing costs are at a sufficiently restrictive level and dimming the chances of further rate hikes.

Still, European bond yields advanced after Germany announced it intends to suspend debt limits for the fourth consecutive year.

Industrial giants traded in Frankfurt contributed to the index’s advance in the session, with Siemens and Schneider adding close to 1%.

Financial stocks were also mostly higher, led by a 1.7% jump for Intesa Sanpaolo.