Europe midday: Shares on the up ahead of US data

28th Jun 2024 10:57

(Sharecast News) - European shares were higher on Friday as investors digested stronger-than-expected UK GDP figures, regional inflation data and awaited US personal consumption figures later in the day.

The pan-regional Stoxx 600 index was up 0.35% to 514. France's CAC 40 was down 0.33% at 7,513 as polls continued to show a first-round national election win for far-right parties.

Investors now look towards the US for the personal consumption expenditure index - the Federal Reserve's preferred inflation measure - for any clues on when interest rates may be cut.

In the UK gross domestic product grew by 0.7% in the first quarter, up from an initial estimate of 0.6% growth. This follows 0.1% and 0.3% contractions in the third and fourth quarters of last year, respectively.

Meanwhile inflation eased in two of the eurozone biggest economies in June, preliminary country data showed on Friday

Spain's National Statistics Institute said annual consumer price inflation was 3.4% in June, down from May's one-year high of 3.6%. It was, however, a little higher than expectations, with most analysts looking for 3.3%.

The fall was driven primarily by slowing food and fuel prices, offsetting an increase in the cost of leisure and cultural services as Spain entered its key summer tourist season.

The core rate, which strips out volatile elements such as energy and food, was unchanged at 3%, while the harmonised index of consumer prices (HICP) fell to 3.5% from 3.8%.

In France, meanwhile, inflation was estimated by the National Institute of Statistics and Economic Studies to be 2.1% in June, compared to May's 2.3%. HICP eased to 2.5% from 2.6%.

As with Spain, the decline was led by falling food and energy prices, and was largely in line with forecasts.

In Italy, however, the consumer price index was unchanged at 0.8%, disappointing analyst expectations for a slight rise to 1%. HICP edged up to 0.9% from 0.8% in May, Italy's National Institute of Statistics estimated.

In equity news, Nokia was higher after the Finnish telecoms giant said it was buying Infinera Corp in a deal with an enterprise value of $2.3bn.

UK retailer JD Sports topped the fallers after US sportswear giant Nike forecast a surprise drop in 2025 revenue.

Reporting by Frank Prenesti for Sharecast.com