European shares rose on Friday along with global stocks as investors took comfort in underlying economic strength and started March on a high note. Bonds halted declines. A gauge of European stocks climbed 0.5% and headed for a weekly gain. S&P 500 futures steadied after the underlying index on Thursday posted its biggest gain in more than two weeks on renewed Fed policy pivot hopes. Asian equities rose about 1%, led higher by gains in Hong Kong and Tokyo.
Data Thursday showing continued labour market resilience supported the case for the Fed to keep tightening, a theme that pushed almost every major asset into the red in February as traders braced for higher rates to curb rampant inflation. Swaps markets are now pricing a peak Fed policy rate of 5.5% in September, and some traders even bet that the benchmark interest rate could rise to 6%.