London, RakyatNTT.ID — European stocks closed higher on Friday, extending their weekly gains as investors reacted positively to the delayed release of U.S. inflation data and a series of upbeat corporate earnings across the region.

The pan-European Stoxx 600 index rose 0.2% by the end of the trading session, with most major exchanges and sectors finishing in positive territory.

The FTSE 100 in London extended Thursday’s rally, hitting another record high and closing up 0.7%, while Germany’s DAX index gained 0.13% to settle at 24,239.

U.S. Inflation Report Boosts Market Sentiment

The U.S. Bureau of Labor Statistics reported that annual inflation in September stood at 3%, slightly below expectations.

This data release was significant because it was among the few federal reports allowed during the ongoing U.S. government shutdown caused by a budget impasse in Congress.

Following the report, U.S. equities surged, with investors interpreting the lower inflation reading as a potential signal for the Federal Reserve to begin cutting interest rates as early as next week.

European Corporate Earnings in Focus

Investors also kept a close eye on corporate earnings across Europe, with several major companies releasing their quarterly results.