Christine Lagarde, president of the European Central Bank (ECB).
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European stock markets closed higher on Friday and notched strong first-half gains in a resurgence that came despite interest rate hikes and bank failures.
The pan-European Stoxx 600 index closed 1.2% higher for the session, with all sectors and major bourses in positive territory. Over the first half of the year, the index ended up roughly 8.8%.
It comes as euro zone inflation data fell more than expected for the month of June. The figure came in at 5.5% this month, indicating that the fiscal tightening of the European Central Bank could be starting to have the desired effect. Core inflation, which excludes food and energy, rose, however, coming in at 5.4%.
European Central Bank President Christine Lagarde said Tuesday that inflation is still too high and it’s too early to declare victory over consumer price rises.
“Inflation in the euro area is too high and is set to remain so for too long. But the nature of the inflation challenge in the euro area is changing,” Lagarde said from the Sintra central banking event in Portugal.
Several sectors posted gains of more than 1% on Friday, including banks, chemicals, insurance and retail stocks.
European equity markets ended Thursday’s session just 0.1% higher, bolstered by robust earnings and a subsequent 17% share price uptick from H&M.
Elsewhere in the world, Asia-Pacific markets were mixed after China’s factory activity shrunk for a third consecutive month in June. U.S. stocks rose Friday as investors Wall Street got another hint of encouraging inflation news.
