European Shares Rise Ahead Of US Data

European stocks were broadly higher on Friday as investors digested a slew of earnings and looked ahead to the release of U.S. retail sales and consumer sentiment figures later in the day for more clues on the economic outlook.

The pan European Stoxx 600 edged up 0.1 percent to 456.66 after losing 1 percent on Thursday. The German DAX and the U.K.’s FTSE 100 both rose about 0.3 percent, while France’s CAC 40 index slipped 0.1 percent.

The British pound pushed higher after a Bank of England policymaker said that the trends fueling price rises may not be temporary.

Swedish lender Swedbank jumped 3.2 percent after reporting a better-than-expected profit for the second quarter.

Telecom equipment maker Ericsson slumped 8.2 percent after its second-quarter core earnings came in below expectations.

Swiss luxury goods group Richemont fell 1.5 percent. The company said constant-currency sales more than doubled in the first quarter.

British luxury group Burberry slumped 4 percent despite the company announcing that sales have returned to pre-pandemic levels.

Intercontinental Hotels Jumped 3.7 percent, EasyJet rallied 2.5 percent and British-Airways owner IAG climbed 3.4 percent after U.S. President Joe Biden said the United States is reviewing when it can lift the COVID-related travel ban for European citizens.

Automakers Volkswagen and Renault rose over 1 percent each after industry data showed Europe’s passenger car registrations increased at a moderate pace in June.

German sportswear company Puma lost 2.4 percent despite posting strong sales and lifting FY21 outlook.

In economic releases, Eurozone inflation fell below 2 percent in June, as initially estimated, final data from Eurostat showed on Friday.

Inflation eased to 1.9 percent in June from 2 percent in the prior month. The annual rate came in line with the flash estimate released on June 30.

The inflation rate had exceeded the European Central Bank’s target of “below, but close to” 2 percent in May for the first time since 2018.

On a monthly basis, the harmonized index of consumer prices gained 0.3 percent in June.

Separately, Eurostat data revealed that the euro area trade surplus declined in May on weak foreign demand.

The trade surplus fell to a seasonally adjusted EUR 9.4 billion in May from EUR 13.4 billion in April. Exports dropped 1.5 percent on a monthly basis in May, while imports grew 0.7 percent.

On an unadjusted basis, the trade balance showed a surplus of EUR 7.5 billion in May compared to EUR 8.9 billion surplus in the same period last year.