Home ›› 14 May 2023 ›› Stock
European shares rose on Friday on upbeat results from luxury major Richemont and gains in energy stocks, while investors assessed inflation data from France and Spain for signals about the European Central Bank's plans on interest rate hikes.
The pan-European STOXX 600 index (.STOXX) closed the day 0.4% higher.
The benchmark index has traded in a tight range in recent weeks as investors remain concerned about the possibility of a US recession and further rate hikes from the ECB, reported Reuters.
Richemont (CFR.S) jumped 3.5%, after touching a record high in early trade, as the luxury goods group beat expectations after strong demand from Chinese consumers for jewellery and watches boosted net profit and sales in the 12 months through March.
"Luxury is doing very well because the Chinese story is more about domestic recovery, not so much manufacturing. What we're getting out of China and the way it affects the European market is very uneven," said Anthi Tsouvali, a multi-asset strategist at State Street Global Markets.
"Within Europe, we're more positive on defensive sectors versus cyclicals."
Meanwhile, data showed Spanish national consumer prices rose 4.1% in the 12 months through April, while French inflation rose 6.9% - both in-line with economists' estimates.
The ECB's latest interest rate hike won't be the last as it needs to ensure the current wave of inflation comes to an end, said ECB policymaker Joachim Nagel.
Among other major movers, energy stocks (.SXEP) including Shell (SHEL.L) and BP (BP.L), were among the top gainers tracking rising oil prices.
Scor (SCOR.PA) soared 9.4% to top the STOXX 600 after the French reinsurance company posted nearly double the first-quarter net income expected by markets.
French bank Societe Generale (SOGN.PA) gained 1.2% after posting better-than-expected quarterly earnings as turmoil in bond and currency markets boosted its trading business.
On the contrary, troubled Swedish real estate group SBB (SBBb.ST), whose shares have plunged recently on debt concerns, slid 8.8% after selling most of its shares in construction company JM (JM.ST) for 2.8 billion Swedish crowns ($275.8 million).
Europe's real estate (.SX86P) was the worst hit sector and posted its steepest weekly decline of 4.5% since late March.
