European stocks rise, dollar heads for weekly loss as yields drop

European stocks rose on Friday as markets stabilized after a sharp tech-led selloff, while the dollar headed for a weekly loss. Concerns over higher interest rates and debt-fueled AI financing rattled markets this week. Traders increased bets on US rate hikes after stronger-than-expected inflation data Wednesday, while investors piled into government bonds. Asian stocks mostly rose, though Indonesian equities suffered their biggest drop since 1998 after MSCI planned to remove the country from key indexes. The dollar fell 0.4 percent, on track for its first weekly decline after three weeks of gains, as lower Treasury yields reduced its appeal. European government bond yields edged higher, but remained lower on the week as investors sought safety in government debt amid AI-related credit worries.