Europe stocks climb as rally continues into December; mining stocks up 3.4% on China data

European markets were higher Friday after closing out their best month since January amid a global rally in stocks and bonds.

The Stoxx 600 index was up 0.6% at 2:49 p.m. London time, with mining stocks leading gains with a 3.35% rise after China’s manufacturing sector recorded an unexpected expansion.

The Stoxx gained 6.45% in November, according to LSEG data, as equities pivoted from three straight monthly losses.

Major bourses ended on an upbeat note after flash data estimated euro zone inflation has now fallen to 2.4%, down from 2.9% in October and significantly lower than forecast.

European Central Bank officials have repeatedly pushed back against investor expectations of rate cuts next year, insisting it is too soon to discuss when they might come.

However, the fresh figures led market watchers to suggest the ECB may need to revise its inflation forecasts and fueled expectations for the first cut to come as soon as April.

Cooling U.S. inflation and signs of continued economic resilience have also sent U.S. stocks and bonds on a tear. Futures now price in a significant chance of five cuts by the Federal Reserve next year.

Oil prices were lower Friday after the Organization of the Petroleum Exporting Countries coalition and its allies, known as OPEC+, announced there would be no formal extension of production cuts. However, Saudi Arabia extended its 1 million barrel per day voluntary cut into the first quarter, and other members announced their own reductions.