European shares set for best month since November 2020 thanks to strong earnings

European shares rose on Friday, set for their first monthly gain in four months as solid corporate earnings overshadowed global recession fears. Meanwhile, the focus now turned to eurozone inflation and gross domestic product data due later on Friday.

The pan-European STOXX 600 index rose 0.7 percent by 0715 GMT, rising for the third consecutive session and set for its best monthly performance since November 2020.

The index has risen 2.3 percent since the start of the week. Investors hope the pace of US interest rate hikes will slow after data on Thursday showed the world’s largest economy contracted for the second consecutive quarter.

Luxury goods stocks received a boost after sales of Hermès rose sharply in the second quarter, buoyed by rapid growth in Europe and the United States, and rebounded strongly in China in June, sending shares of the Birkin bag maker up 6.7 percent.

LVMH shares rose 1.4 percent, providing the biggest boost to the Stoxx 600 index.

Shares of French bank BNP Paribas advanced 3.4 percent, as it reported better-than-expected profits in the second quarter after a decline in provisions for bad loans.

Preliminary readings on euro zone inflation in July and second-quarter GDP data are due later on Friday.