Europe close: Stocks edge higher as euro surges after CPI data

European stocks wavered Friday, but the euro rose, after the release of inflation figures for the Eurozone, which may help the European Central Bank chart its next move.

The benchmark Stoxx Europe 600 index edged 0.03%, while Germany’s DAX was 0.46% higher and France’s CAC 40 rose 0.72%.

Friday data

Figures released earlier showed the rate of unemployment for the bloc was unchanged at 11.1% in June, although the number of jobless people rose by 31,000 as Italy’s jobless rate increased to 12.7% from 12.5%.

Meanwhile, data from the European Union’s statistics agency showed consumer prices in July rose 0.2% year-on-year, in line with the previous month's growth and analysts' expectations. It fell short of the European Central Bank’s target of just under 2%.

"Today’s data provide further justification for the ECB to complete its quantitative easing programme in full and we still suspect that additional monetary policy support will be needed to bring inflation anywhere near target,” said James Howat, European economist at Capital Economics.

US consumer confidence slips

Across the Pond, the cost of employment in the US rose 0.2% in the second quarter compared with a 0.7% pace in the previous three months, registering an all-time low since record began in 1982.

The figure was comfortably below forecast for a 0.6% gain.

Meanwhile, the Chicago PMI index climbed to 54.7% in July from 49.4% in the previous month, reaching its highest level since January and consumer sentiment fell to a final July reading of 93.1 from a final June level of 96.1, according to an University of Michigan report.

Elsewhere, China’s stocks rallied near the end of the week but still closed lower as government measures intended to lift the market waned.

The euro surged 0.95% against the dollar, gaining 0.72% against the pound and 0.85% against the yen.

Earnings in focus

Shares in French bank BNP Paribas edged 2.86% after making strong gains after it swung to profit of €2.56bn in the second quarter, compared with a loss of €4.22bn the previous year.

Carrefour nudged 1.03% higher after it reported a rise in first-half profit on the back of stronger sales in its home market.

Airbus rallied 3.51% after posting a 6% increase in first-half core operating profit.

Going the other way, Vallourec slumped 6.32% after saying its net loss worsened in the second quarter and cautioning that falling demand in the oil and gas industry will hit the second half.

British Airways and Iberia owner International Consolidated Airlines Group slid 1.94% despite beating profit forecasts for the second quarter and said it enjoyed a 5.6% increase in passengers.

Meanwhile, in London, shares in Lloyds Banking Group slipped 3.82%

The bank reported a 15% increase in underlying first-half profits but its second-quarter disappointed. As well as corporate news flow, investors sank their teeth into a couple of key Eurozone data releases.