European Shares Climb As Inflation Worries Ebb

(RTTNews) - European stocks advanced on Friday as near-term worries around inflation eased somewhat amid growing concerns about a recession.

As commodities extend declines, investors are pinning hopes that inflation will start easing.

Markets ignored survey results showing that German business morale fell more than expected in June. The Ifo institute said its business climax index dropped to 92.3 from 93.0 in May.

Elsewhere, U.K. retail sales declined in May due to lower food sales, while British consumer confidence declined to a new record low in June, separate reports showed. The pan-European STOXX 600 index rallied 1.3 percent to 407.53 after declining 0.8 percent on Thursday.

The German DAX rose 0.6 percent, France's CAC 40 index climbed 1.6 percent and the U.K.'s FTSE 100 was up 1.3 percent.

Swiss insurance firm Zurich Insurance Group jumped 2.6 percent after it agreed to sell its legacy traditional life insurance back book in Germany to Viridium Holding AG.

Italian oil & gas contractor Saipem plunged more than 8 percent. The company said that the financial resources available to the group will be exhausted by the first quarter of 2023 if its plans to raise capital did not go through.

TUI AG, a German leisure, travel, and tourism company, fell 2.6 percent after its CEO resigned in an abrupt move.

Ultra Electronics soared 12.6 percent in London after Cobham received the green light to take over the defense supplier.

Lamprell, which is facing severe liquidity problems, plummeted 78 percent.

Plumbing and heating products distributor Ferguson advanced 1.7 percent on share buyback news.

Sanofi jumped 2.4 percent and GSK added 1.7 percent after the drug major announced positive data from their vaccine trial which evaluated an adjuvanted bivalent D614 and Beta (B.1.351) vaccine candidate.

Zalando slumped 13 percent after the German online fashion retailer cut its FY outlook, citing deteriorating macro conditions and consumer confidence.