European Shares Extend Gains As Inflation Data Brings Cheer

(RTTNews) - European stocks rose for a third straight session on Thursday and the euro slipped against the dollar after data showed Spanish inflation eased to its lowest level in a year and a measure of Eurozone economic sentiment rose more than expected in August.

Elsewhere, preliminary data showed inflation fell in six important German states in August, boosting bets on an ECB rate cut next month.

German bond yields fell ahead of flash inflation data from Germany and revisions to U.S. GDP figures due later in the day.

German consumer price inflation is seen at 2.1 percent in August, down from 2.3 percent in July.

The pan-European STOXX 600 was up 0.7 percent at 524.02 after rising 0.3 percent in the previous session.

The German DAX climbed 0.6 percent, France's CAC 40 jumped 0.7 percent and the U.K.'s FTSE 100 was up 0.3 percent.

British banks rebounded after falling on Wednesday amid concerns that the new Labour government could raise taxes on the sector in October's Budget. NatWest, HSBC, Lloyds Bank and Barclays rose 1-2 percent.

GSK rose half a percent after its RSV vaccine received approval for wider use in adults in Europe.

Building materials distributor Grafton Group fell about 1 percent after reporting a fall in its first-half pretax profit and revenue.

Energy services firm Hunting slumped 4.4 percent despite posting a 23 percent jump in its first-half profit.

German food-delivery company Delivery Hero jumped nearly 5 percent after half-year earnings beat market views.

Automakers traded higher even as industry data showed Europe car registrations growth eased notably in July largely due to the sharp fall in battery-electric car demand.

Car sales grew only 0.2 percent on a yearly basis in July after a 4.3 percent gain in June, according to data released by the European Automobile Manufacturers' Association.

Renault, BMW, Mercedes Benz and Volkswagen were up between half a percent and 1 percent.