European Stocks Surge Amid Positive Earnings Updates; Eyes on U.S. Inflation Data

European shares gained further on Thursday, driven by positive earnings reports, while anticipation grew for U.S. inflation data. The pan-European STOXX 600 rose 0.5%, led by construction and materials sectors. Investors are looking at U.S. consumer prices for signals on the Federal Reserve's interest rate decisions.

European shares continued to climb on Thursday, buoyed by a series of upbeat earnings updates. However, market focus has shifted towards upcoming U.S. inflation data, which could offer clues about the Federal Reserve's timing for its first interest rate cut.

The pan-European STOXX 600 index increased by 0.5% as of 0817 GMT, largely lifted by gains in the construction and materials sector. In contrast, the oil and gas sector saw a minor decline. London's FTSE 100 also rose by 0.2%, with data indicating that Britain's economy grew more quickly than expected in May. This complicates the chances of the Bank of England lowering rates next month.

French stocks outperformed their European counterparts, rising by 0.6%. Media group Vivendi led the charge with a 3% surge following JP Morgan's addition of the stock to its 'positive catalyst watch.' Investors are keenly watching U.S. consumer prices, set to be released at 1230 GMT, which are anticipated to show a moderation of inflation to 3.1% in June from 3.3% in May.