By Elizabeth Howcroft

LONDON, March 3 (Reuters) – European stocks rose on Friday as risk appetite was boosted by signs of an economic recovery in China, even as expectations of a Bank interest rate hike central European government kept the yield on public debt at its highest level in years.

* Investors are trying to gauge the trajectory of the Federal Reserve’s rate hikes after strong US data in recent weeks suggested further rate hikes may be needed.

* However, Wall Street closed higher on Tuesday, in a move analysts blamed on Atlanta Fed Chairman Raphael Bostic, saying the US central bank should stick to “regular” rate hikes on a quarter point.

* Gains continued during Asian trading amid investor optimism over signs the world’s second-largest economy is rebounding strongly after the Chinese government rolled back strict COVID controls in December.

* Activity in China’s service sector grew at the fastest pace in six months in February, fueling a solid increase in employment, according to a PMI survey.

* At 09:40 GMT, the MSCI World Stocks Index was up 0.3%, on track to end the week up 0.8%. The European STOXX 600 rose by 0.6% and the British FTSE 100 by 0.2%.

* “We seem to be in a tug of war between the issue of reopening China, which essentially means an upward reassessment of global growth expectations, and a reassessment of the Fed,” said Vasileios Gkionakis, director of the European strategy. Exchange.

* Gkionakis noted that if risky assets face headwinds from tighter monetary policy, global demand will pick up.

* The recovery in business activity in the euro zone accelerated last month, according to data from the PMI survey.

* The yield on government bonds in the euro zone remained near its highest level in years, after euro zone inflation data on Thursday lifted market expectations for the Bank’s terminal rate Central European at around 4%.

* The yield on 10-year U.S. Treasuries fell to 4.0067% from Thursday’s high of 4.091%. The yield on German benchmark 10-year bonds was trading at 2.744%, its highest level since 2011 and on track for its biggest weekly rise since December.

* The euro was up 0.1% at $1.0609, while the greenback was down 0.2% against a basket of six major currencies.

* Oil prices fell about 0.2%.

* Cryptocurrencies have been affected by the deepening crisis in which the crypto-focused bank Silvergate is plunged. Bitcoin fell 4.7% to $22,373, its lowest since Feb. 15.

(Edited in Spanish by Carlos Serrano)

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