European Shares Climb on Earnings Surge and U.S. Inflation Data

European shares closed higher on Friday, driven by earnings advancements across multiple sectors, particularly luxury. This stability came as U.S. inflation data showed moderation. The STOXX 600 index rose 0.8%, buoyed by strong performances from EssilorLuxottica and Hermes, among others. Key sectors such as construction and health care also showed notable gains.

European shares ended higher on Friday, buoyed by strong earnings across several sectors, including luxury, amidst stable global markets as U.S. inflation data painted an improving picture.

The STOXX 600 index rose by 0.8%, recovering from a two-month low, with a slight weekly uptick of about 0.5%. EssilorLuxottica surged 7.4% on news that Meta might invest in the company, while Hermes gained 3.4% after exceeding second-quarter sales expectations.

A key index of Europe's top luxury brands saw a 2.9% jump, marking its largest single-day gain in six months. Construction and materials sectors showed strength, led by France’s Vinci, which saw a 3.5% increase. Meanwhile, a dip in U.S. June prices sparked optimism for potential Federal Reserve rate cuts in September.