European shares log their best week in two monthsReutersEuropean shares notched up their best week in two months on Friday as concerns over an energy supply crunch eased, bringing some calm to investors worried about a big rise in interest rates and a political crisis in Italy. The pan-European STOXX 600 closed 0.3 percent up at its highest level since June 10, while for the week it jumped nearly 2.9 percent. The data prompted traders to reprice their interest rate expectations as they now expect 105 basis points of ECB rate hikes by December, down from about 120 basis points before the data, Refinitiv data showed. ECB policymaker Peter Kazimir on Friday said the central bank might raise interest rates by 25 or 50 basis points in September. “We retain a cautious view on European stocks as the ECB treads a fine line between fighting inflation and avoiding recession,” UBS Global Wealth Management chief investment officer Mark Haefele said.
