European stocks surged on Friday, buoyed by the European Central Bank's (ECB) recent decision to cut interest rates by 25 basis points to 3.5%. The pan-European STOXX 600 Index increased by 0.8%, with all major bourses showing positive movement, particularly in the mining and technology sectors. Analysts noted that the ECB's rate cut is part of a broader strategy as it prepares for future economic challenges, with expectations of further cuts likely as inflation remains a concern. France reported a drop in inflation for August to 1.8%, its lowest since July 2021, indicating easing price pressures. Meanwhile, the Bank of England is anticipated to hold steady on rates for now, despite mixed signals about inflation expectations. Investors are keenly awaiting the U.S. Federal Reserve's upcoming meeting, where a rate-cutting cycle is expected to commence, which could influence European monetary policies.