European stocks exhibited mixed results on Friday as investors processed a variety of regional data while anticipating critical U.S. inflation figures later in the day that could provide insights on potential interest rate cuts.
Recent data from the Office for National Statistics showed the British economy performed better than initially estimated in the first quarter. Gross domestic product (GDP) increased by 0.7 percent compared to the fourth quarter, which saw a 0.3 percent contraction. The initial growth estimate was 0.6 percent. With this positive growth, the country has emerged from a technical recession, as GDP had contracted in the two previous quarters.
In France, a preliminary estimate from the statistical office INSEE revealed that consumer price inflation eased in June to its lowest level in nearly three years, driven by slower rises in food and energy costs. The consumer price index rose by 2.1 percent year-over-year in June, down from 2.3 percent in the previous month. This marks the weakest inflation rate since August 2021, when prices increased by 1.9 percent.
Conversely, Germany saw a higher-than-expected rise in unemployment figures for June, according to data from the Federal Labour Office.
The pan-European STOXX 600 index rose by 0.2 percent to 513.80, recovering slightly after a 0.4 percent decline on Thursday. Germany's DAX climbed by 0.5 percent, the UK's FTSE 100 edged up by 0.4 percent, while France's CAC 40 dipped by 0.4 percent ahead of the forthcoming parliamentary elections. Recent polls indicate a potential first-round win for far-right parties in France.
Retailer JD Sports Fashion declined by 4 percent and PUMA SE fell nearly 3 percent following a warning from Nike, the world's largest sportswear company by revenue, about potential sales declines this year.
Nokia saw a 1.2 percent increase in its shares after the Finnish telecoms giant agreed to acquire Infinera in a $2.3 billion deal aimed at bolstering its optical networks division.
Shares of Delivery Hero SE dropped by 1.4 percent after the German online food delivery platform announced that Marie-Anne Popp would serve as interim Chief Financial Officer (CFO) starting from July 1, 2024, following the immediate resignation of current CFO Emmanuel Thomassin.
Deutsche Beteiligungs shares plummeted by 6.5 percent. The capital market company announced plans to issue convertible bonds due 2030, with an aggregate principal amount of 100 million euros. These bonds are convertible into new and/or existing no-par value registered shares of the company.
