European Shares Rise on Positive Earnings From Hermes

European stocks rose as a positive earnings report from Hermes bolstered confidence in a broader economic recovery, but the benchmark STOXX is set to end a two-week winning streak on concerns about rising inflation.

The European index rose 0.1%, while Hermes shares jumped 5.7%, as the manufacturer of Birkin bags said sales had rebounded strongly in the fourth quarter of last year.

The stock was among the biggest gainers on the STOXX 600 and contributed to the European Personal Goods Index rising 0.7%.

But the STOXX 600 index is still heading to end the week almost flat after its three-session decline, as optimism about a better-than-expected earnings season has receded, giving way to concerns that high inflation may lead central banks to start cutting back a set of stimulus packages.

Later today, all eyes will be on preliminary readings of business activity data across the Eurozone.

French carmaker Renault fell 3.5% after the company posted a record annual loss of 8 billion euros ($ 9.68 billion).