European equity markets moved higher on Friday, recovering from their sharpest daily decline in more than two weeks as easing oil prices encouraged investors back into risk assets despite ongoing concerns over artificial intelligence spending.
Sentiment improved after Brent crude retreated almost 4 percent, having briefly climbed above $100 per barrel on Thursday following renewed Houthi attacks on oil tankers in the Red Sea.
UK retail sales surprise to the upside
Sterling strengthened against both the U.S. dollar and the euro after new figures showed that UK retail sales unexpectedly expanded in June.
Retail sales increased by 1.0 percent during the month, following May’s revised 1.2 percent gain, supported by strong demand for outdoor products during warmer weather. Economists had expected a monthly decline of 0.3 percent.
Compared with the same month last year, retail sales were up 4.2 percent, accelerating from the 3.5 percent annual growth recorded in May.
Major European indices post gains
Germany’s DAX advanced 0.8 percent, while France’s CAC 40 and the UK’s FTSE 100 each gained 0.4 percent during morning trading.
Corporate earnings drive individual movers
British polymer specialist Victrex (LSE:VCT) rose almost 2 percent after announcing changes to its management team.
HSBC Holdings (LSE:HSBA) added 1.3 percent after agreeing to sell its Singapore life and health insurance business to Allianz.
Shares in DiscoverIE Group (LSE:DSCV) jumped 13 percent after the electronics manufacturer reported organic order growth of 31 percent and a 6 percent year-on-year increase in first-quarter sales.
Engineering company Renishaw (LSE:RSW) climbed 6.6 percent after indicating that annual profit is expected to exceed previous market expectations.
German software leader SAP (TG:SAP) gained 6 percent after delivering stronger quarterly revenue.
ATOSS Software (TG:AOF) advanced 4.3 percent following second-quarter revenue and profit growth.
Volkswagen (TG:VOW3) slipped 1 percent after posting weaker-than-expected second-quarter earnings and lowering its forecasts for annual sales and vehicle deliveries.
Swedish security and access specialist Assa Abloy (TG:ALZC) edged 1 percent higher after completing the acquisition of U.S.-based Classic Brass Inc.
Security services provider Securitas (TG:S7MB) tumbled 11 percent after reporting second-quarter core profit below market expectations.
French pharmaceutical company Sanofi (EU:SAN) declined 2.2 percent after ending the clinical development of amlitelimab for moderate-to-severe atopic dermatitis following mixed Phase 3 trial results.
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