Major European Markets Close Higher

(RTTNews) - European stocks closed higher on Friday, recovering well after a mid morning setback, as some upbeat corporate earnings helped offset concerns about economic slowdown and interest rates.

The pan European Stoxx 600 climbed 0.56%. The U.K.'s FTSE 100 gained 0.5%, Germany's DAX surged 0.77% and France's CAC 40 edged up 0.1%, while Switzerland's SMI ended 0.66% up.

Among other markets in Europe, Belgium, Denmark, Ireland, Netherlands and Norway closed higher.

Czech Republic, Greece, Iceland, Poland, Portugal, Russia, Spain and Turkiye ended weak, while Austria, Finland and Sweden settled flat.

In the UK market, Prudential, Pearson, Smurfit Kappa Group, Segro, Land Securities Group, British Land Co., Beazley, Persimmon, Rentokil, IAG, Airtel Africa, Shell, BP and Smith & Nephew gained 2 to 4.3%.

Natwest Group tumbled nearly 4% amid disappointment over the outlook for the year. Diageo drifted down 2.5%, while Antofagasta, Ocado Group, Weir Group, Barclays, Fresnillo, Lloyds Banking Group and British American Tobacco lost 1 to 2%.

In Paris, Saint Gobain gained 2.6% after reporting higher-than-expected first-quarter revenue. Dassault Systemes surged 2.5%. Alstom, TotalEnergies, Michelin, Renault, Stellantis, Vivendi, Legrand, Airbus Group, Bouygues, Capgemini and Unibail Rodamco advanced 1 to 2%.

Engie ended nearly 6% down. Pernod Ricard lost 2.6% and Sanofi ended 1.79% down.

In the German market, Covestro surged 8.5% after announcing it would resume current share buyback program.

Fresenius Medical Care climbed about 3.5%. Deutsche Boerse, Hannover Rueck, Daimler Truck Holding, Puma, Symrise, Vonovia and Infineon Technologies gained 1.5 to 2.3%.

Commerzbank fell 4%. BASF and Deutsche Telekom lost 2.4% and 1.7%, respectively.

On the economic front, the euro area dodged a recession in the first quarter that was widely anticipated a few months ago, thanks to the slowing energy price growth, fiscal stimulus and unwinding zero-Covid policy in China.

Gross domestic product grew 0.1% in the first quarter after staying flat in the preceding period, preliminary flash estimate published by Eurostat showed. The rate was slightly weaker than economists' forecast of 0.2% expansion.

On a yearly basis, economic growth slowed to 1.3% from 1.8% in the fourth quarter. GDP was expected to advance 1.4%.

The French economy expanded moderately in the first quarter on robust foreign demand, the first estimate released by the statistical office Insee showed. Gross domestic product expanded 0.2% from the preceding quarter. The growth rate matched economists' expectations and followed a nil growth in the fourth quarter of 2022.

France's consumer price inflation rose unexpectedly at the start of the second quarter amid an upturn in energy costs, though marginally, preliminary data from the statistical office Insee showed on Friday.

The consumer price index climbed 5.9% year-over-year in April, following a 5.7% rise in February. Meanwhile, economists had forecast inflation to remain stable at 5.7%.

Germany avoided a recession in the first quarter as the economy stagnated with the fall in household and government spending offsetting the improvements in capital formation and exports. Inflation in the biggest euro area economy eased more than expected in April largely due to the base effects and slowing energy price growth.

Another data showed that the sluggish economic activity at the start of the year led to an increase in unemployment but the overall labor market remained strong.

UK car production rose 6.1 percent year-on-year to 81,605 units in March, driven by a 10.4% surge in exports. Output for the home market declined 5.1%. Exports claimed 75.4% of total production and home market grabbed 24.6%.