06:45 AM EST, 03/08/2024 (MT Newswires) -- European bourses tracked modestly higher midday Friday as traders weighed softer interest rates and an easier inflation outlook from the European Central Bank.

On Thursday, the ECB reduced its forecast for continental inflation in 2024 to 2.3% from the previous outlook of 2.7%, suggesting an easing of monetary policy could be on the horizon. The ECB has an annual inflation target of 2%, as measured by consumer price indices.

Food and property stocks gained on European trading floors mid-session, while retail and tech issues lagged.

Investors also eyed Wall Street futures signaling green, and higher closes overnight on Asian exchanges.

The Q4 seasonally adjusted gross domestic product (GDP) was largely unchanged from Q3, in both the euro area and the broader European Union, reported Eurostat,

The pan-continental Stoxx Europe 600 Index was up 0.2% mid-session.

The Stoxx Europe 600 Technology Index was off 0.1%, but the Stoxx 600 Banks Index gained 0.3%.

The Stoxx Europe 600 Oil and Gas Index was up 0.4%, and the Stoxx 600 Europe Food and Beverage Index inclined 0.4%.

The REITE, a European REIT index, rose 0.4%, but the Stoxx Europe 600 Retail Index declined 0.6%.

On the national market indexes, Germany's DAX was flat, and the FTSE 100 in London was down 0.3%. The CAC 40 in Paris was up 0.2%, and Spain's IBEX 35 gained 0.2%.

Yields on benchmark 10-year German bonds were lower, near 2.26%.

Front-month North Sea Brent crude oil futures were down 0.3% to $82.71 per barrel.

The Euro Stoxx 50 volatility index was down 0.6% to 13.82, indicating below-average volatility for European stock markets in the next 30 days, a positive signal. A reading above 20 indicates choppier markets ahead, while below 20 suggests calmer exchanges.