European Shares Extend Winning Streak On Earnings Optimism
European stocks hit new highs on Friday and were on course for their fourth consecutive week of gains amid optimism over a strong earnings season and signs that U.S. inflation may have peaked.
The pan European Stoxx 600 was up 0.3 percent at 476.09 to hit a record high for the tenth straight session. The German DAX climbed 0.6 percent, France’s CAC 40 index gained 0.4 percent and the U.K.’s FTSE 100 was up 0.3 percent.
Adidas rose more than 2 percent after it agreed to sell its underperforming Reebok business to Authentic Brands Group Inc. for up to 2.1 billion euros ($2.5 billion).
Zooplus jumped as much as 40 percent after U.S. private equity firm Hellman & Friedman offered to buy the online retailer of pet supplies for around 3 billion euros ($3.5 billion).
Deutsche EuroShop rallied 2.3 percent after the real estate investment company returned to profit in the second quarter.
Shares of Ipsen SA plunged nearly 12 percent after the pharmaceutical company announced the withdrawal of the New Drug Application for palovarotene following very recent discussions with the U.S. Food and Drug Administration.
The company said it plans to resubmit to the FDA upon completion of the additional data analysis.
Defense contractor Babcock jumped 6.6 percent after it agreed to sell its consultancy unit Frazer-Nash for 293 million pounds ($404.5 million) in cash.
Diversified miner BHP Group gained about 1 percent amid speculation it may announce a decision on exiting fossil fuels next week.
Technology company Avon Protection plunged 24 percent after cutting its revenue guidance for the next two years.
TotalEnergies, BP Plc and Royal Dutch Shell were moving lower as oil prices dropped on fuel demand concerns.
In economic releases, German wholesale prices grew 11.3 percent on a yearly basis in July, following a 10.7 percent rise in June, Destatis reported. Prices have been rising since February 2021.
The latest rise was the biggest annual rate since October 1974, when prices were up 13.2 percent amid the first oil crisis.
French unemployment rate dropped marginally in the second quarter, data released by the statistical office Insee showed.
The ILO jobless rate dropped to 8 percent in the second quarter from 8.1 percent in the first quarter. The rate was forecast to fall to 7.9 percent.
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