European equities extend gains

Europe’s stock markets advanced Friday on news of slowing eurozone inflation and a UK economy performing slightly better than thought.

The dollar climbed before US inflation figures that should show how much impact the Federal Reserve’s aggressive interest rate hikes are having in taming prices in the world’s biggest economy.

The eurozone’s annual inflation rate slowed sharply to 6.9 per cent in March from 8.5 per cent in February, beating expectations as energy prices eased, the EU’s statistics agency said.

Inflation still remains well above the two-per cent level targeted by the European Central Bank (ECB), despite falling from a peak of 10.6 per cent in October.

London stocks were boosted by upgraded data showing that the UK economy grew 0.1 per cent in the fourth quarter of last year to narrowly avoid recession. An initial reading had output flat in the final three months of last year.