European shares post best week since 2011

European stock markets gained for a fourth straight day on Thursday with sentiment propped up by the latest round of stimulus from the US Federal Reserve and on hopes the coronavirus pandemic was close to peaking.

The pan-European STOXX 600 index closed up 1.6% to end a holiday-shortened week 7.4% higher - its best week since 2011. London's FTSE led the charge among European majors, up 2.9%.

Sentiment was buoyed by data showing France's coronavirus hospital deaths slowed and Spain's new cases eased, but the main lift of the session came as Wall Street indexes jumped after the Fed rolled out a $2.3 trillion program to bolster local governments and businesses.

All eyes were on the fate of a multi-billion euro programme that European Union finance ministers have been struggling to agree on this week. Eurogroup chairman Mario Centeno said the ministers are close to overcoming differences.

All major European sectors rose, with the travel and leisure sector - worst impacted by the pandemic - leading gains for yet another day. The sector added 24.5% this week, helping reduce yearly losses to 36%.

Cineworld topped the pan-region index, soaring 27%. Shares of the cinema chain have been on the rise since it announced cost cuts earlier this week.

The STOXX 600 benchmark index has earned back about $1.7 trillion in market value since hitting an eight-year low in March, but remains nearly 23% below its record high as sweeping lockdown measures crush business activity and spark mass layoffs.

Diageo Plc, the world's largest spirits maker, became the latest firm to pull its sales forecast and suspend a capital return plan in a bid to shore up cash. But its shares gained 4.4% after shedding almost a fifth of their value this year.

Europe's most valuable tech firm SAP SE rose 4.8% despite cutting its full-year earnings forecast as the pandemic caused customers to put orders on hold.