European stocks are rising due to strong earnings

European stocks rose on Thursday, supported by the rise of the Swedish clothing stock, H&M, after the company achieved stronger-than-expected profits, but statements related to tightening monetary policy from a number of senior central bank officials curbed risk appetite.

And by 0704 GMT, the European Stoxx 600 index rose 0.1 percent, a day after a number of senior central bank officials, including Federal Reserve Chairman Jerome Powell, hinted at the need for more interest rate hikes to curb inflation.

H&M shares jumped 7.3 percent, to their highest level in more than a year, after the world’s second-largest apparel retailer posted higher-than-expected quarterly operating profit, and the company said it expects strong sales in the third quarter as well.

H&M’s rise pushed the European retail sub-index up 1.1 percent, while the auto sector was the second highest riser.

Renault shares rose 4.2 percent after the French automaker raised its forecast for the full fiscal year.