European stocks edged higher on Friday and were set to post their best annual gain since 2021 on hopes that global central banks led by the Federal Reserve could cut interest rates next year.
The pan European STOXX 600 was up 0.3 percent at 479.38, gaining over 12 percent for the year.
The German DAX was up 0.3 percent and looked to end the year with a gain of nearly 20 percent.
France's CAC 40 was up 0.4 percent, gaining more than 16 percent for the year.
The U.K.'s FTSE 100 was up 0.1 percent and looked to end the year with a gain of nearly 4 percent.
Regional volumes remained light on the last trading day of the year, with investors looking ahead to the New Year holiday.
On a light day on the economic front, data showed Spanish inflation held steady at the end of 2023.
A preliminary reading showed the 12-month inflation rate fell to 3.1 percent in December from 3.2 percent in the period through November.
Market Analysis