European shares climb, set for best month since Nov 2020 on earnings cheer
2022.07.29 11:14
The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, July 28, 2022. REUTERS/Staff
(Reuters) – European shares rose on Friday and were on pace for their first monthly gain in four as a host of strong earnings from corporate Europe overshadowed fears of a global recession, with focus now on euro zone inflation and GDP data later in the day.
The pan-European STOXX 600 was up 0.7% by 0715 GMT, rising for the third straight session, and set for its best monthly performance since November 2020.
The index has gained 2.3% so far this week as investors hoped for a possible slowdown in the pace of U.S. interest rate hikes after data on Thursday showed the world’s biggest economy shrank for a second straight quarter.
Luxury stocks got a boost after sales at Hermes rose sharply in the second quarter, lifted by fast growth in Europe and the United States, and rebounding strongly in China in June, sending shares of the Birkin bag maker up 6.7%.
LVMH shares rose 1.4%, providing the biggest boost to the STOXX 600.
French bank BNP Paribas (OTC:BNPQY) gained 3.4% as it reported a better-than-expected profit in the second quarter after bad loan provisions dipped.
Flash readings on July euro zone inflation and second-quarter GDP data is due at 9 GMT.
