European shares on track for best month in four

European shares on track for best month in four

The German share price index DAX graph is pictured at the Frankfurt stock exchange in Frankfurt.

European shares rose on Friday and were on pace for their first monthly gain in four as a host of strong earnings from corporate Europe overshadowed fears of a global recession, with focus now on euro zone inflation and GDP data later in the day.

The pan-European STOXX 600 was up 0.7% by 0715 GMT, rising for the third straight session and set for its best monthly performance since November 2020.

The index has gained 2.3% so far this week, as investors hoped for a slowdown in the pace of U.S. interest rate hikes after data showed the world's biggest economy shrank for a second straight quarter.

Luxury stocks went up 6.7% after sales at Hermes went up sharply in the second quarter, lifted by fast growth in Europe and the United States, and rebounded strongly in June in China.

The LVMH shares went up by 1.4%, giving the biggest boost to the STOXX 600.

French bank BNP Paribas gained 3.4% as it reported a better than expected profit in the second quarter, after bad loan provisions dipped.

Flash readings on the euro zone inflation and second-quarter GDP data are due at 9 GMT.