(Bloomberg) -- European stocks posted an eighth consecutive week of gains — their longest winning streak since 2018 — on optimism around rate cuts. Reckitt Benckiser Group Plc sank by the most in over two decades.

The Stoxx 600 Index was down 0.2% by the close. It gained 0.4% on the week. Reckitt plunged after a US jury ordered the consumer-goods company’s unit, Mead Johnson, to pay out $60 million to an Illinois woman. Reckitt said it stood by the safety of its products.

Currys Plc shares also declined after JD.com said it did not intend to make an offer for the British electronics retailer. Among sectors, telecoms and auto shares outperformed.

Equity investors are trying to balance signs of robust global economic growth with uncertainty over when central banks could start cutting interest rates. While several European Central Bank rate-setters have indicated they are open to starting policy easing in June, a series of strong US data readings - including Thursday’s producer inflation figures - have cast doubt on the timing of the Federal Reserve’s first cut. 

“The main question is when will central banks start cutting rates, but for that they need inflation to be more contained for longer,” said Luis Garcia, equity portfolio manager at Mapfre AM.

The rally in equity markets could falter if sticky inflation prompts the Fed to signal fewer rate cuts than currently anticipated, Barclays strategist Emmanuel Cau wrote.

Among other individual stock movers, shares in Polish fashion retailer LPP plunged after Hindenburg Research took a short position in the firm, accusing it of not fully divesting its Russia business. 

HelloFresh SE was among the top gainers on relief the meal-kit maker’s full-year earnings contained no further negative surprises. British Airways-owner IAG climbed after a double upgrade to outperform at BNP Paribas Exane.

For more on equity markets:

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  • M&A Watch Europe: Ageas, Swisscom, Vodafone, Greencore, Redrow
  • European IPOs Are Making Money for Buyers Once Again: ECM Watch
  • US Stock Futures Unchanged; Smartsheet, Adobe Fall
  • Shell Slows Green Goal: The London Rush

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--With assistance from Sagarika Jaisinghani.

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