By Anastasiia Kozlova and Purvi Agarwal (Reuters) -European shares inched lower on Friday, but were poised for their fifth consecutive month of gains, as rising bets of a U.S. interest rate cut and some progress on a Russia-Ukraine ceasefire lifted investor sentiment this week.

European markets took a breather on Thursday, after rallying in the last three sessions, as investors drew comfort from some Fed officials advocating for a rate cut next month, supported by economic data pointing to weakness in the economy. Progress on a Russia-Ukraine peace deal also contributed to the upbeat sentiment so far this week.

European equities eked out a modest gain on Thursday, with the pan-European Stoxx 600 reversing early losses to finish 0.12% higher as investors assessed a shifting global economic landscape, incoming corporate news,

London’s FTSE 100 added 0.2% ahead of the UK’s autumn budget, where Finance Minister Rachel Reeves is expected to outline tens of billions of pounds in tax increases. European markets drew from upbeat investor sentiment globally as expectations for another U.S. Federal Reserve rate cut in December grew, following soft economic data on Tuesday.

EUROPEAN shares fell on Tuesday, with those in Germany near a five-month low as a broad risk-off mood gripped global markets, sparked by worries about an overvalued tech sector and diminishing