European shares steady after three-day rally; focus on US inflation

European shares steadied on Friday after three consecutive sessions of gains that put them on track for a weekly rise, while investors await a crucial inflation reading in the U.S.

The pan-European STOXX 600 index was up 0.1% at 579.52 as of 0805 GMT, while major regional bourses such as Germany's DAX and France's CAC 40 edged up 0.2% and 0.3%, respectively.

A personal consumption expenditure report is due in the U.S. later in the day, which could influence the Federal Reserve's stance on monetary policy easing in the world's biggest economy.


Recent data and dovish comments from some Fed policymakers have prompted investors to amplify bets on an interest rate cut next week.

Basic resources advanced 1.3%, the biggest gainer on the index, after copper prices hit a record high. Industrial stocks jumped 0.3%, set for the fourth consecutive session of gains.

Citigroup set a 2026 target of 640 for the benchmark index and upgraded the auto, industrials, chemicals, and basic resources sectors, citing fiscal tailwinds in 2026.

Among individual stocks, Swiss Re fell 5.3% to the bottom of the STOXX 600 after the reinsurer announced its targets for 2026, below analysts' expectations.

Ocado topped the index with a 12.7% rise. The online supermarket technology firm will receive a one-off $350 million cash payment from Kroger as the U.S. grocer decided to close three robotic warehouses and cancel a planned facility.