European Stocks Close On Strong Note

(RTTNews) - Despite the latest batch of economic data raising concerns about Chinese economic growth, European stocks closed on a strong note on Friday as concerns about aggressive rate hike eased after two Fed officials signaled support for a second straight 75-basis-point rate hike at the U.S. central bank's policy meeting later this month.

The European Central Bank, which is due to meet next week amid Italy's political turmoil, is expected to raise interest rates by 25 bps, well short of the 75-bps that the Fed could now hike in July.

The pan European Stoxx 600 climbed 1.79%. The U.K.'s FTSE 100 gained 1.69%, Germany's DAX surged 2.76% and France's CAC 40 advanced 2.04%, while Switzerland's SMI closed with a gain of about 1.7%.

Among other markets in Europe, Austria, Belgium, Czech Republic, Denmark, Finland, Ireland, Netherlands, Norway, Poland, Portugal and Spain closed with sharp to moderate gains.

Greece, Iceland and Turkey ended weak, while Sweden settled flat.

In the UK market, Rolls-Royce Holdings, Airtel Africa, JD Sports Fashion, Rentokil Initial, Berkeley Group Holdings, IAG, Harbour Energy, Smith (DS), ICP, Aviva, Taylor Wimpey, Barclays, British American Tobacco, AstraZeneca and Ashtead Group gained 3 to 5.3%.

BT Group plunged nearly 8%. Burberry Group ended 4% down after it reported sales growth of just 1% in its latest financial quarter.

United Utilities, Severn Trent and Admiral Group also declined sharply.

In the French market, Air France-KLM and Renault both gained nearly 7%. Atos, Faurecia, Valeo, WorldLine, Airbus Group, Schneider Electric, Essilor, Capgemini, Michelin, STMicroElectronics, Safran, Vinci, Unibail Rodamco, Publicis Groupe, Dassault Systemes, , Saint Gobain, Societe Generale and Engie gained 2 to 5.4%.

In Germany, Porsche Automobil rallied nearly 6%. Continental, Volkswagen, Siemens, Daimler, BMW, MTU Aero Engines, Adidas, RWE, Brenntag and Siemens Healthineers gained 3 to 5.2%.

Fresenius, Linde, SAP, Deutsche Wohnen, SAP, Infineon Technologis, HeidelbergCement, Deutsche Post, Bayer, Munich RE and Deutsche Bank also moved up sharply.

Swiss luxury goods group Richemont ended nearly 3% down after the company saw sales in mainland China plunge 37% in the three months through June amid lockdowns, stringent testing requirements and a near collapse in international tourist travel.

TomTom NV shares soared 12% after the Dutch navigation and digital mapping company confirmed its revenue and cashflow guidance for 2022 and 2023 despite strained supply chains.

Data from Eurostat showed the euro area trade deficit decreased in May from a record-high in April, as exports grew faster than imports.

The seasonally adjusted trade deficit narrowed to EUR 26.0 billion in May from a revised EUR 31.8 billion in April, which was the biggest shortfall since 1999.

The trade balance also remained negative for the eighth successive month in May.

Exports climbed 4.8% month-on-month in May, while imports registered a slower growth of 2%.

Data from the European Automobile Manufacturers' Association showed registrations of new passenger cars decreased 15.4% year-over-year in June, compared to the 11.2% drop in May, as supply chain issues continue to hurt production.