By Amir Orusov
(Reuters) -European shares were set for solid weekly gains on Friday with banks and miners leading early advances as rising Federal Reserve rate-cut bets lifted the STOXX 600 to a record
high during the week.
The pan-European STOXX 600 index climbed 0.4% to 569.9 points by 0847 GMT, on track for its best weekly showing since late April.
Banks climbed 1%, with Raiffeisen leading gains at a 6.3% rise after the Financial Times reported the European Union is looking at lifting sanctions on assets linked to Russian oligarch Oleg Deripaska to compensate the Austrian bank.
ABN Amro climbed 2.2% after Goldman Sachs upgraded its rating on the Dutch bank to "buy" from "sell".
Basic resources, which houses Europe's top mining companies, gained 0.9% tracking higher base metal prices.
As the U.S. government remains in a shutdown, a key U.S. jobs report which was initially expected on Friday is unlikely to be published later in the day.
"It does very much feel that the market is looking past the ongoing US government shutdown and focusing on Federal Reserve rate cut expectations," said Fiona Cincotta, senior market analyst at City Index.
Trader bets indicate a near-certain chance of a Fed rate cut later this month according to the CME FedWatch Tool following a weak private payrolls report earlier this week.
Healthcare was set to be the week’s top-performing sector after a U.S.-Pfizer drug pricing deal eased uncertainty. Hopes of softer Fed policy and a healthcare rally have helped drive the STOXX 600 to record highs, narrowing the gap with Wall Street. The index is up 12.7% year-to-date, versus a 14% gain in the S&P 500.
Growth in the euro zone services sector accelerated slightly in September to an eight-month high and Germany's services sector also recorded its fastest growth in eight months.
Meanwhile in France, its dominant services sector contracted more than initially estimated in September and British business activity grew at the slowest pace in five months.
Among other moving stocks, Nemetschek added 1.8% after Berenberg upgraded its rating on the German software developer to "buy" from "hold".
(Reporting by Shashwat Chauhan in Bengaluru and Amir Orusov in Gdansk; Editing by Nivedita Bhattacharjee)
