European Stocks Close Higher Again

(RTTNews) - European stocks closed higher on Thursday, extending recent gains, amid easing concerns about interest rates, and data showing the British economy contracted less than expected in May.

Data from the Labor Department showed on Wednesday that consumer price inflation in the U.S. inched up by slightly less than expected in the month of June, raising expectations the Fed will soon halt interest rate hikes.

The U.K. economy contracted less than expected in May with real GDP decreasing 0.1% on a monthly basis, reversing April's 0.2% growth. Economists had expected the economy to see a 0.3% decline in May.

France's consumer price inflation eased to the lowest level in more than a year amid a fall in energy costs as initially estimated, latest data from the statistical office INSEE showed Thursday. The consumer price index climbed 4.5%year-over-year in June, following a 5.1% gain in May.

Positive reaction to remarks from Bank of Italy governor Iganzio Visco that the ECB is "not very far" from a peak in interest rates helped as well.

Meanwhile, data from Eurostat showed Eurozone industrial output rose less than expected in May. The data said, industrial output increased 0.2% month-on-month, down from the previous reading of 1%.

The pan European Stoxx 600 climbed 0.61%. The U.K.'s FTSE 100 gained 0.32%, Germany's DAX ended 0.74% up, and France's CAC 40 advanced 0.5%, while Switzerland's SMI edged up 0.02%.

Among other markets in Europe, Austria, Czech Republic, Denmark, Finland, Iceland, Ireland, Netherlands, Poland, Portugal, Spain and Turkiye closed higher.

Belgium, Greece, Norway, Russia and Sweden ended weak.

In the UK market, Convatec Group, Glencore, Entain, Antofagasta, Prudential, M&G, Ocado Group, Anglo American Plc, Rio Tinto, Sainsbury (J) and Auto Trader Group gained 1.5 to 3%.

British American Tobacco declined 2.6%. Barratt Developments ended 1.6% down after it warned of a challenging environment and a further slowdown in demand due to "significant macro-economic headwinds."

while Bunzl, Vodafone Group, BT Group, IHG and Associate British Foods ended lower by 0.7 to 1.2%.

In the German market, Commerzbank climbed 3%. Infineon, SAP, Siemens Healthineers, Deutsche Bank, Bayer, Puma, Vonovia and Henkel gained 1 to 2.3%.

In Paris, Teleperformance gained about 2.7%. Societe Generale, Bouygues and Michelin advanced 1.8 to 2%.

Alstom, Dassault Systemes, STMicroElectronics, Credit Agricole, LVMH, Thales, Veolia and Publicis Groupe gained 1 to 1.6%.