European Shares Rise On Economic Optimism

stockmarkets jan23 12aug22 lt

European stocks advanced on Friday after data showed Euro zone industrial production in June grew three times more than expected on the back of a jump in the output of capital goods.

Industrial production rose 0.7 percent sequentially in June, while analysts had predicted a 0.2 percent rise. Year-on-year, output rose 2.4 percent.

Elsewhere, the U.K. economy contracted less than expected in the second quarter.

Data from the Office for National Statistics showed that GDP fell 0.1 percent sequentially in the second quarter, after a revised 0.8 percent growth in the previous quarter. Economists had forecast the GDP to drop to 0.2 percent.

The pan European Stoxx 600 edged up 0.3 percent to 441.37 after ending flat with a positive bias the previous day.

The benchmark DAX gained 0.4 percent, France's CAC 40 index added 0.3 percent and the U.K.'s FTSE 100 was up 0.6 percent.

Roche rose 1.5 percent after the Swiss drug maker announced it has received approval from the U.S. FDA for its Xofluza drug to treat influenza in children.

Sanofi gained about 1 percent following two days of losses on growing worries about U.S. litigation focused on a heartburn drug that contained a probable carcinogen.

GSK jumped 3.8 percent. In its statement on Zantac (ranitidine) litigation and N-nitrosodimethylamine, the drug maker said the U.S. and European regulators have concluded there is no evidence of a causal association between ranitidine therapy and the development of cancer.

Flutter Entertainment soared 11.6 percent. After posting lower first-half earnings, the world's largest online betting firm said it expects a turnaround in the second half of the year.

German shopping center investor Deutsche EuroShop slumped 5.8 percent after reporting flat revenue for the first half of 2022.

Freenet, a telecommunications and web content provider, climbed 2.4 percent after lifting its FY EBITDA outlook.

Knorr-Bremse tumbled 3.6 percent. The manufacturer of braking systems for rail and commercial vehicles reported that its operating EBIT for the first half of 2022 declined to 365 million euros from the prior year's 495 million euros.

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