European Shares Extend Gains As Inflation Falls To 3-year Low

(RTTNews) - European stocks were moving higher on Friday as traders digested a slew of regional data and looked ahead to the release of core PCE price index, a key U.S. inflation measure, due later in the day for further direction.

Eurozone inflation fell sharply in August to its lowest level since mid-2021 due to falling energy costs, Eurostat data showed - adding impetus to calls for cuts to interest rates in the region.

Consumer prices slowed to 2.2 percent in August from 2.6 percent in July this year. Separate set of data revealed that the seasonally adjusted unemployment rate in the euro area dropped by 0.2 percentage points to 6.4 percent in July.

French inflation cooled to a three-year low in August. INSEE statistics agency reported that French consumer prices rose 1.9 percent in August, down from 2.3 percent a month earlier and falling below the European Central Bank's two-percent target for the first time since August 2021.

Meanwhile, the French economy grew at a slower pace than previously thought in the second quarter. GDP grew 0.2 percent in the April-to-June period compared to the first quarter.

Elsewhere, data from mortgage lender Nationwide Building Society showed U.K. house prices dropped for the first time in four months in August despite the fall in mortgage rates.

House prices posted a monthly fall of 0.2 percent, reversing July's 0.3 percent increase.

In a speech today, ECB Executive Board member Isabel Schnabel described the recent declines in inflation across parts of the Eurozone as "welcome developments" but cautioned that the "current level of headline inflation understates the challenges monetary policy is still facing."

The pan European STOXX 600 was up 0.4 percent at 526.48, extending gains for a fourth straight session and beating its record peak of 525.59 hit in June.

In corporate news, Ambu plunged 12.7 percent after the Danish medical equipment maker reported disappointing Q3 results in its Endoscopy Solutions segment.

Germany's Thyssenkrupp was little changed after the Chairman and CEO of its steel division, along with five other board members, have resigned due to conflicts with the parent company over the future direction of the business.