German stocks rose notably on Friday after overnight data showed a sharp rise in U.S. weekly jobless claims, stoking optimism the Federal Reserve will start cutting interest rates this year.
The dollar and bond yields dipped, reflecting investors\' expectations that the Fed may cut interest rates in September or November.
Markets now eagerly await next week\'s April U.S. producer price index (PPI) and the consumer price index (CPI) for signs that inflation has resumed its downward trend towards the Fed\'s 2 percent target rate.
The benchmark DAX was up 129 points, or 0.7 percent, at 18,815 after rallying 1 percent the previous day.
Online retailer Zalando jumped over 3 percent as Berenberg upgraded its rating on the stock to \"buy\" from \"hold.\"