European stock markets advanced on Friday, closing at fresh all-time highs and securing gains for the fourth week in a row. Investors remain optimistic that the U.S. Federal Reserve will not raise interest rates for the time being.

The STOXX Europe 600 Index closed 0.7% higher. Technology shares led the gains, with ASML Holding NV making the largest contribution to the index's rise. The utilities and industrial sectors also outperformed the broader market, while consumer-related sectors lagged behind.

Trading volume in Europe was nearly 40% below the 20-day average, as U.S. markets were closed for a holiday.

In individual stock movements, French biotech firm Abivax SA surged 5.6%, bringing its weekly gain to 60% and marking its largest weekly advance in nearly a year. The company alleviated market concerns regarding the safety of its experimental oral drug for inflammatory bowel disease, reigniting speculation that it could become a takeover target.

Optimism that resilient economic growth and persistently cooling inflation could support the economic outlook has propelled the European benchmark index to a series of record highs. Weaker-than-expected U.S. employment data released on Thursday further bolstered market sentiment by dampening investor bets on further Federal Reserve rate hikes.

Joachim Klement, Head of Strategy at Panmure Liberum, stated, "Price momentum remains the key driver for European equities. With U.S. markets closed for a holiday and no significant macroeconomic data or corporate earnings releases today, investors are likely to continue chasing assets that have shown strong recent performance, going with the flow."

However, Klement also cautioned that equities could face a "momentum crash" if the prevailing market narrative shifts.