© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, June 29, 2023. REUTERS/Staff
(Reuters) – European shares rose on Friday as lacklustre data on China’s factory activity spurred hopes of more policy stimulus, while investors awaited key inflation readings for more clues on the direction of global interest rates.
The pan-European index was up 0.3% by 0703 GMT.
The index was set for muted returns at the end of the quarter, with mounting evidence of China’s weak post-COVID-19 recovery and concerns about higher-for-longer global interest rates having stalled a rally in equities that began early this year.
On a monthly basis, the index is on track for gains of 1.4%.
Miners gained 0.7%, tracking metal prices higher as a decline in China’s factory activity boosted expectations of more economic stimulus from the country. Energy firms also supported the index on Friday.
Investors are now awaiting U.S. Personal Consumption Expenditure (PCE) data for May as well as preliminary figures on euro zone inflation later in the day.
Among individual stocks, shares of sportswear makers Adidas (OTC:) and Puma (ETR:) were down 1.7% and 0.3% respectively, after Nike (NYSE:)’s gloomy forecast.
