European stocks head for first weekly loss in month

European stocks rose on Friday, rebounding from a 2-week low hit yesterday, and head for the first daily gain in 5 days, but on the cusp of the first weekly loss in a month, after the Federal Reserve revealed its gloomy economic projections, and fears over a second coronavirus wave in the US.

The Stoxx Europe 600 index rose 1.1% as of 10:45 GMT, after closing lower by 4.1% yesterday, and hit a 2-week low of 353.07 points, extending losses for the fourth straight day.

This loss of yesterday is the biggest since March 12, due to a risk-off move after the Fed meeting concluded and its gloomy expectations.

The pan European index opened higher today, rebounding from a 2-week low, and heading for the first daily gain in 5 days, with most European markets and sectors seeing red today.

The manufacturing sector saw the largest gains in Europe today, with a rise by 2%, as most shares recovered after a huge losses wave.

The Stoxx Europe 600 index has lost 4.75% so far during this week, to head for its first weekly loss in a month, on investors' risk-aversion.

The Fed also revealed its first set of economic projections since December on Wednesday, estimating the US GDP to shrink 6.5% in 2020, which is the worst recession since the 2008 global financial crisis, but projected a growth by 5% in 2021.

Fed chairman Jerome Powell said that the US faces a "long road" to recovery from the recession caused by the coronavirus pandemic, and added, "We don't even expect rates to rise this year or next."

Multiple US states have reported a surge in new coronavirus cases after the economy reopened, which renewed fears over second wave of the outbreak.

S&P 500 futures rose more than 1.7%, after the index closed lower by 5.9% yesterday at Wall Street, posting the third straight daily loss and the largest since March 16.

Back to Europe, the Euro Stoxx 50 index rose 1.3%, France's CAC 40 added 1.7%, Germany's DAX rose 0.8%, and the UK's FTSE 100 rose 1%.