European stocks rise but head for sharp weekly declines

By European stocks edged higher on Friday but looked on course for their worst weekly performance since April as high bond yields and fears about aggressive interest rate hikes tempered sentiment ahead of key US inflation data. The pan-European STOXX 600 rose 0.3% to 637.60 points by 0716 GMT. The index closed at a two-month low on Thursday after the European Central Bank raised interest rates as expected and warned of higher inflation as energy prices soar in the wake of a prolonged Middle East conflict. Oil prices were trading above $100 for a third day. The ECB's hawkish stance has prompted calls for further rate hikes, while government bond yields across the globe have surged. The US 10-year Treasury yield, a benchmark for global borrowing costs, hovered below the closely watched 5% level. The German 10-year yield stayed near multi-decade highs. Investor attention will be on US Consumer Price Index figures due later in the day, which could provide fresh signals on the Federal Reserve's interest rate path ahead of a monetary policy meeting next week. Among stocks, Italian semiconductor testing company Technoprobe jumped 4.7% as its customer TSMC posted strong August revenue.