European stocks rise but head for sharp weekly declines

European stocks inched higher on Friday, but the market was set up for its worst weekly performance since April as bond yields stayed elevated and investors braced for potential Fed signals from U.S. inflation data. The pan-European STOXX 600 rose 0.3% to 637.60 points by 0716 GMT after closing Thursday at a two-month low. The prior session’s weakness followed the ECB’s rate increase and its warning about higher inflation tied to surging energy prices amid a prolonged Middle East conflict. Oil has held above $100 for a third straight day, while U.S. 10-year yields hover near a key level and Germany remains near multi-decade highs.