Europe close: Stocks end week firmly higher

European shares were higher at midday on Friday as the never-ending deluge of corporate earnings continued with investors also cheered by better-than-expected economic growth in the eurozone.

The pan-European Stoxx 600 was up 1.28% to reach 438.29, alongside an advance of 2.16% to 22,405.48 for Milan's FTSE Mib.

Germany's Dax meanwhile put on 1.42% to 4,1130.29.

Boosting Italian shares, yields on benchmark 10-year Italian sovereign bonds fell 11 basis points to 3.05% after the head of the right-wing Brothers of Italy party said she would respect euro area budget rules if chosen as prime minister.

Earlier, data showed that France managed to avoid recession after it returned to growth in the second quarter, with gross domestic product rising 0.5pc in the period after a 0.2% contraction at the start of the year.

Euro zone economic growth accelerated quarter-on-quarter in the second three months of the year, according to preliminary data released, defying expectations of a slowdown, due to stronger than forecast performances in Spain, France and Italy.

GDP in the single currency area rose 0.7% quarter-on-quarter from April to June and 4.0% year-on-year, said the European Union's statistics office Eurostat. Economists had been looking for a 0.2% quarterly rise and a 3.4% year-on-year gain.

In equity news, shares in luxury goods maker Hermes jumped as the company reported strong growth in Europe and the US, with a resurgence in in China in June.

Shares in Allfunds Group were up 17% after upbeat results and a deal to acquire a majority stake in Mainstreet Partners.

Britain’s NatWest Bank gained 8% after reporting higher profits on the back of surging UK interest rates and also announced a £1.75bn return of cash to shareholders.

French bank BNP Paribas added 3% as it reported a better-than-expected profit in the second quarter after bad loan provisions dipped.