European shares track global equities higher ahead of inflation data

European shares kicked off the month higher on Friday, buoyed by strength in global stocks after favourable U.S. inflation data and upbeat earnings, while investors looked ahead to euro zone inflation data for fresh clues on monetary policy easing. The pan-European STOXX 600 was up 0.5% by 9:34 GMT, within a whisker of a record high, tracking strength in global equities.

European shares kicked off the month higher on Friday, buoyed by strength in global stocks after favourable U.S. inflation data and upbeat earnings, while investors looked ahead to euro zone inflation data for fresh clues on monetary policy easing.

The pan-European STOXX 600 was up 0.5% by 9:34 GMT, within a whisker of a record high, tracking strength in global equities. However, the benchmark index remained set for its first weekly decline in six. Germany's DAX climbed 0.6%, scaling record highs for the seventh consecutive session.

The European technology index added 0.8%, drawing support from a boost in AI-linked tech stocks across the globe. Financials led gains with a 1.2% rise in banks index. Real estate stocks also moved 1% higher on growing hopes of monetary policy easing following in-line U.S. inflation figures.

Due at 1000 GMT, euro zone February consumer prices data is expected to show that inflation, which soared to double-digits in 2022, is moving back towards the European Central Bank's 2% target. Data this week showed a slowdown in inflation in European Union members Germany, France and Spain.

"The ECB will reiterate its data-dependency for future decisions and it should also be more comfortable with the current, less aggressive market pricing," said HSBC analysts in a note. While the ECB has kept interest rates at record highs since September 2023, the first rate cut is seen in June, an expectation shared by investors and economists.

In corporate updates, Daimler Truck surged 13.5% after the German truck maker raised its dividend and announced a share buyback program on the back of better-than-expected pre-tax 2023 earnings. Shares in Grifols rose 18.2% to the top of STOXX 600 after the Spanish drug maker said Shanghai RAAS stake sale will proceed and released a new cash flow target for 2024.

Swiss logistics group Kuehne und Nagel tumbled 12.6% to the bottom of STOXX 600 after posting a bigger-than-expected drop in annual operating profit, hit by weaker performance across nearly all its segments. Saint-Gobain reported a drop in 2023 sales, taking the shares of the French construction materials group down by 4.3%.

The broader construction and materials index was the top decliner with a 0.6% drop.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)