European equities rose for a second consecutive week, led by banks, as investors absorbed Thursday’s US bank stress test results. Better-than-expected unemployment data from the US on Friday further buoyed sentiment.

The pan-European FTSE Eurofirst 300 rose 4.3 per cent over the week, closing at a four-month high of 865.89. This left it 4 per cent above its level at start of the year.