European stocks edge higher, Richemont earnings in focus

European stock markets rose on Friday as investors digested conflicting economic statistics from the United Kingdom as well as additional quarterly corporate reports.

At 08:15 GMT, the DAX index in Germany was 0.4% higher, the FTSE 100 in the United Kingdom was 0.3% higher, and the CAC 40 in France was 0.8% higher.

Despite an unusually strong 0.3% dip in output in March, the UK economy increased by 0.1% in the first three months of 2023, according to data released Friday.

The Bank of England raised interest rates by 25 basis points to the highest level since 2008 on Thursday to tackle excessive inflation, but it also emphasised the economy’s resilience as it raised its growth forecasts.

Last month, the European Central Bank raised interest rates as well.

The European Central Bank raised interest rates last week and said that more hikes are on the way, with ECB President Christine Lagarde noting on Thursday that the central bank’s efforts to control inflation are not done.

Friday marked the continuation of earnings season.

Richemont stock climbed more than 5%, reaching an all-time high, as the Swiss luxury giant voiced confidence in capitalising on a rebound in Chinese demand.

The shares of Societe Generale jumped 0.9% as the French company topped quarterly earnings projections, with bond trading offsetting a drop in retail banking.

Allianz shares declined 0.4% despite the German financial services giant reporting a solid increase in first-quarter net profit, rebounding from costs for a U.S. funds scandal a year ago, pulled down by difficulties in its asset management segment.