European Stocks Close Higher On Encouraging Eurozone Inflation Data

(RTTNews) - European stocks closed higher on Friday, buoyed by data showing a sharp deceleration in eurozone inflation in May, and on optimism about further stimulus from China to spur growth in the world's second largest economy.

Data from Eurostat showed eurozone consumer price inflation was flat month-on-month in May, resulting in a 6.1% annual increase, down from 7% in April.

Meanwhile, the International Monetary Fund (IMF) called for more interest rate hikes from the European Central Bank in a regular review of the economy of the 20 countries sharing the euro.

Earlier this week, the Federal Reserve left its rates unchanged, and the European Central Bank raised rates by 25 basis points.

The focus next week will be the Bank of England's interest rate decision. The central bank is expected to raise interest rates by a quarter point to a 15-year high of 4.75%, marking its 13th straight rate rise.

The pan European Stoxx 600 climbed 0.53%. The U.K.'s FTSE 100 gained 0.19%, Germany's DAX surged 0.41% and France's CAC 40 advanced 1.34%, while Switzerland's SMI gained 0.74%.

Among other markets in Europe, Czech Republic, Denmark, Greece, Ireland, Norway, Poland, Portugal, Spain and Sweden closed higher.

Iceland and Turkiye closed weak, while Finland, Austria, Belgium, Netherlands and Russia ended flat.

In the UK market, Ocado Group surged nearly 7.5%. Centrica, CRH, British Land Company, Frasers Group, Flutter Entertainment, Entain, Burberry Group, Unite Group, National Grid, Haleon, Associated British Foods, Whitbread and BT Group gained 1.3 to 3%.

Airtel Africa declined more than 3.5%. Hargreaves Lansdown, M&G, Glencore, Admiral Group, Ashtead Group, Anglo American Plc and Antofagasta shed 1 to 2%.

In the German market, Zalando climbed more than 3.5%. Sartorius gained nearly 3%. E.ON, Deutsche Boerse, Covestro, Fresenius, SAP, Commerzbank, Fresenius Medical Care, Merck, Mercedes-Benz, RWE and Bayer advanced 1 to 2.5%.

Infineon, BASF, Deutsche Bank, Siemens and Brenntag lost 1 to 2%.

In Paris, Air Liquide rallied nearly 5%. Essilor climbed 3.8% and LVMH surged nearly 3%. Thales, Kering, Capgemini, Vinci, Unibail Rodamco, Eurofins Scientific, Hermes International, Veolia, Safran and Sanofi gained 1.5 to 2.3%.