Brussels, July 03 (QNA) - European stocks are on track for its biggest weekly gain in more than a month as they record a new all-time high today.

European equities were buoyed by scaled-back expectations of a near-term increase in U.S. interest rates.

The STOXX Europe 600 index rose 0.5 percent to 651.52 points, putting it on course for its strongest weekly performance since mid-May. Germany's DAX led gains among the region's major markets, climbing 0.9 percent to a record high. Meanwhile, Italy's FTSE MIB advanced 0.64 percent in Milan, while the United Kingdom's FTSE 100 gained 0.35 percent in London.

Defense stocks posted the strongest gains this week, alongside shares of manufacturing, banking, and financial services companies. (QNA)