European equities drifted higher on Friday as traders pared bets on a faster pace of rate cuts and rotated into industrial shares that had lagged for most of the quarter.
The Stoxx Europe 600 was up 0.4 percent by midafternoon, with the DAX gaining 0.6 percent and the CAC 40 up 0.2 percent. Yields on 10-year German government bonds held near 2.4 percent.
Capital-goods makers led the advance after a stronger-than-expected reading of factory orders. Banks lagged, extending a week of losses tied to margin concerns.
The euro was steady against the dollar. Brent crude slipped below $78 a barrel.
A version of this article appears in print on Oct. 11, 2026, Section B, Page 9 of the European edition with the headline: European Stocks Edge Higher as Investors Reassess Rate Path.