LONDON — European stocks closed higher on Friday as investors continued to digest the European Central Bank's decision to cut rates and looked to next week's Federal Reserve meeting stateside.
The pan-European Stoxx 600 provisionally closed 0.72% higher, with all major bourses and almost all sectors ending the day in positive territory. For the week, the benchmark added 1.09%.
Retail stocks led gains Friday, up 1.84%, while autos added 1.6%. Food and beverage stocks were the sole outlier, dipping by 0.32%.
Shares of French financial services firm Worldline plunged more than 19% at one point after it announced the departure of its CEO and adjusted in full-year guidance amid what it said were "slower trading conditions."
Get top local stories in San Diego delivered to you every morning. Sign up for NBC San Diego's News Headlines newsletter.
The European Central Bank slashed rates as expected on Thursday, marking its second 25-basis-point cut this year and bringing its key interest rate to 3.5%.
Policymakers gave little indication on the course for monetary policy, however, with President Christine Lagarde saying the bank was not "pre-committing to a particular rate path."
The ECB's meeting comes just days ahead of the U.S. Federal Reserve's Sept. 17-18 meeting, at which it's expected to begin its own rate-cutting cycle.
Money Report
U.S. stocks ticked higher on Friday, with the S&P 500 on track for its fifth straight winning session.
Asia-Pacific markets, meanwhile, finished mixed, as mainland Chinese markets rebounded from a six-year low and Australian markets neared an all-time high.
Back in Europe, French inflation fell to 1.8% in August in a sign of easing price pressures in the region, fresh data showed Friday.