European stock markets rose Friday and looked set to end the first half of the year well in the green.
The pan-European Stoxx 600 index was up 0.9% in morning trade, with most sectors in positive territory. Over the first half of the year, the index is up almost 7.5%.
It comes as euro zone inflation data fell more than expected for the month of June. The figure came in at 5.5% this month, indicating that the fiscal tightening of the European Central Bank could be starting to have the desired effect. Core inflation, which excludes food and energy, rose, however, coming in at 5.4%.
European Central Bank President Christine Lagarde said Tuesday that inflation is still too high and it’s too early to declare victory over consumer price rises. “Inflation in the euro area is too high and is set to remain so for too long. But the nature of the inflation challenge in the euro area is changing,” Lagarde said from the Sintra central banking event in Portugal.
Banking stocks led gains Friday with a 1.4% uptick, while tech stocks bucked the trend and shed 0.2%.
European equity markets ended Thursday’s session just 0.1% higher, bolstered by robust earnings and a subsequent 17% share price uptick from H&M.
Elsewhere in the world, Asia-Pacific markets were mixed after China’s factory activity shrunk for a third consecutive month in June. U.S. equity futures were little changed early Friday as investors awaited the latest data on personal consumption expenditures.
