European stocks experienced a broad increase on Friday, marking their fourth consecutive session of gains. This positive movement was buoyed by robust U.S. retail sales data and low weekly jobless claims, alleviating worries about a potential recession in the United States.
This week's favorable producer price and consumer price inflation reports have reinforced expectations for a 25-basis point rate cut by the Federal Reserve in September. The pan-European STOXX 600 rose by 0.4% to 512, following a 1.2% increase in the previous trading session.
Germany's DAX index climbed by 0.6%, while France's CAC 40 added 0.3%. However, the U.K.'s FTSE 100 dropped by 0.3%.
The British pound strengthened against major currencies as official data revealed a rebound in U.K. retail sales volumes for July, dampening investor expectations for a Bank of England rate cut in the fourth quarter.
U.K. retail sales rose by 0.5% on a monthly basis in July, recovering from a revised 0.9% decline in June. This growth was driven by summer discounting and the European football championship, which boosted sales for department stores and sports equipment. Year-over-year, sales volumes increased by 1.4% in July 2023 following a decline due to poor weather in June.
In corporate developments, AstraZeneca's shares saw a slight uptick after the U.S. FDA granted priority review status for its supplemental Biologics License Application for Imfinzi, aimed at treating limited-stage small cell lung cancer.
Nibe Industrier AB surged by 6% after reporting better-than-expected second-quarter results.
