European Stocks Close Notably Higher On Earnings, Economic Data

(RTTNews) - European stocks closed higher on Friday, extending recent gains, riding on data showing an acceleration in euro zone economic growth in the second quarter, and some encouraging earnings updates.

Hopes that the Federal Reserve will slowdown the pace of interest rate hikes rose after data showed a drop in U.S. GDP Growth in the latest quarter, further aiding sentiment.

The pan European Stoxx 600 climbed 1.28%. The U.K.'s FTSE 100 surged 1.06%, Germany's DAX advanced 1.52% and France's CAC 40 gained 1.72%, while Switzerland's SMI edged up 0.15%.

Among other markets in Europe, Austria, Belgium, Denmark, Finland, Greece, Iceland, Ireland, Netherlands, Norway, Poland, Russia, Spain, Sweden and Turkey ended with strong gains.

Czech Republic and Portugal drifted lower.

In the UK market, Natwest Group soared more than 8% on strong results.

Ocado Group surged nearly 7%. Fresnillo, Aveva Group, Croda International, Barclays Group, Ashtead Group, Antofagasta, Hargreaves Lansdown, B&M European Value Retail, Anglo American Plc, Howden Joinery Group and Rolls-Royce Holdings gained 3 to 6%.

British American Tobacco and Avast both ended lower by more than 4%. IAG shed about 2.5%, while Intertek Group, Compass Group, Smith & Nephew, Imperial Brands, Centrica, Haleon and BAE Systems lost 1 to 2%.

AstraZeneca shares ended marginally down despite the company raising its revenue outlook, saying it expects prescriptions of its Covid therapy to drive sales growth of more than 20% this year.

In the German market, Zalando rallied more than 6.5%. HeidelbergCement, E.ON, Deutsche Post, Infineon Technologies, Brenntag, Continental, Sartorius, Allianz, Covestro, Deutsche Bank and Siemens gained 2 to 3.5%.

In Paris, Cap Gemini zoomed nearly 9%. Atos gained about 8%. Hermes International rallied 7% after reporting record earnings in the first half of the financial year.

Air France-KLM gained about 6% on strong results. Faurecia, Renault, L'Oreal, Vinci, Saint Gobain, Michelin, ArcelorMittal and Societe Generale gained 3 to 6%.

BNP Paribas, Teleperformance, Unibail Rodamco, Valeo, Publicis Groupe, Veolia and WorldLine also rallied sharply.

Vivendi plunged more than 7%. Thales, Essilor, Sanofi, Carrefour and Legrand ended with sharp to moderate losses.

In economic news, data from Destatis showed the German economic growth stalled in the second quarter of the year. That compared to expectations of a 0.1% rise. The previous quarter's growth was revised as 0.8% versus the preliminary estimate of a 0.2% growth.

Data from Eurostat showed the Eurozone economy grew 0.7% in the June quarter, versus market expectations of a 0.2% growth. The first quarter's growth stood downwardly revised to 0.5%.

Annual inflation rate in the Euro Area increased to a new record high of 8.9% in July, versus 8.6% in June, which the markets were expecting.

The seasonally adjusted unemployment rate in Germany also increased to a nine-month high of 5.4% in July.

Data released by Insee earlier in the day showed France's second quarter GDP grew at 0.5%, versus expectations of 0.2% growth and the 0.2% contraction in the previous period.

Meanwhile, another data from Insee showed annual inflation rate in France increased to 6.1% in July from 5.8% in June. The reading is the highest since July of 1985, and is higher than the market forecast of 6%.