For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window
March 20 (Reuters) - Europe's STOXX 600 edged higher on Friday, but was set for a third consecutive weekly loss, as an expanding Middle East conflict and a surge in oil prices reinforced inflation fears and increased the odds of a rate hike from the European Central Bank.
The pan-European STOXX 600 .STOXX was up 0.8% at 588.37 points by 0805 GMT, with the heavyweight financial sector .SX7P providing the biggest boost, while energy .SXEP sector declined 0.7% as crude prices pulled back. O/R
The benchmark is down 1.1% so far this week. A three-week loss would be its longest such streak since April 2025.
Israel launched fresh attacks on Iran a day after President Donald Trump told it not to repeat its strikes on Iranian natural gas infrastructure.
The European Central Bank kept the policy rate unchanged on Thursday, but policymakers expect to discuss hikes in the coming months as the Iran war pushes up inflation in the euro zone.
Among individual stocks, Unilever ULVR.L shares added 1.2% after the consumer goods group confirmed it was in talks with U.S.-based McCormick & Company MKC.N about selling its foods business.
(Reporting by Avinash P in Bengaluru; Editing by Harikrishnan Nair)
((Avinash.P@thomsonreuters.com;))
