European stocks closed the week higher thanks to the gains recorded

• The ECB left the door open to rate cuts based on the data, but remains lukewarm.
• The gains helped stocks downplay the decline in consumer confidence.
• The Bank of England and the Fed are the main risks for next week.

The European indices closed Friday's session in green, after the moderate reaction of the European Central Bank (ECB) and the fall in European consumer confidence surveys, after the ECB left the door open for dependence on data trigger rate cuts sooner than planned by the central bank.

The ECB kept rates unchanged this week, warning that discussions on rate cuts are still premature, but policymakers signaled there would be room on the table for quick, shallow cuts if European economic data turns sour in the near term. , helping to shore up investor sentiment that rate relief could be around the corner. Currently, the ECB sees no room for a rate cut until sometime in the second half of the year, compared to market bets that expect a first cut before June.

France's CAC40 index hit a record high on Friday, dragged down by big rises in luxury goods, and market bids rose further after Barclay's raised its outlook on the luxury goods sector to overweight.

Germany's DAX index hit a record again on Friday, with German sector gains noticeably trimmed after German GfK consumer confidence hit an 11-month low of -29.7 for February, versus an expected rebound in -25.1 to -24.5 in January.

Next week, the Bank of England and the US Federal Reserve (Fed) will announce their respective rate hikes and monetary policy statements.

The French CAC40 gained almost 170 points on Friday to close up 2.28% at 7,634.14 euros, while the pan-European STOXX600 index rose 5.31 points to end the trading week at 483.84 euros, a 1.11% more.

The German DAX index closed at all-time highs, but still performed worse than its European counterparts: it gained around a third of a percentage point and closed at 16,961.39 euros, almost 54.5 points higher.

London's FTSE 100 index also rose on Friday, adding 105.36 points to close up 1.4% at £7,635.09.

DAX Technical Outlook

The German DAX index hit short-term highs near €16,950.00 to ring the closing bell with the highest bids in its history, and the index is up almost 3.75% from last week's swing low in the 16,328.00 euros.

The DAX is trading well above technical levels, with the 200-day simple moving average (SMA) well below €15,905.00. The index has not come into contact with the 50-day or 200-day SMA since November last year, when the German equity index rebounded from €14,600.00.

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