European Shares Rebound On Bargain Hunting

European stocks bounced back on Friday after a bruising week on concerns over further interest rate rises and slowing global economic growth.

U.S. Federal Reserve Chairman Jerome Powell cautioned Thursday that getting inflation under control won’t be easy and that he could not guarantee a so-called “soft landing” for the world’s largest economy.

In economic releases, French inflation was confirmed at an annual 5.4 percent in April.

Industrial output in the euro zone fell an annualized 0.8 percent in March versus a -0.6 percent decline expected, Eurostat data showed.

The pan European Stoxx 600 rallied 1.2 percent to 429.60 after declining 0.8 percent on Thursday.

The German DAX climbed 1.2 percent, France’s CAC 40 index rose 1.4 percent and the U.K.’s FTSE 100 was up 1.5 percent.

Belgian pharmaceutical company UCB slumped nearly 12 percent after the U.S. Food and Drug Administration didn’t approve a key psoriasis drug.

Finland’s state-controlled utility Fortum Oyj jumped 4.1 percent after saying it is getting ready to leave Russia.

BP Plc rose about 1 percent and Royal Dutch Shell added half a percent in London as oil prices rose about 1 percent on fears of an acute supply shortage.

Software specialist Sage Group added 1 percent after it reported five per cent year-on-year organic revenue growth in its half-year results.

Investment company Bridgepoint Group soared 10 percent following its annual general meeting.

Telecommunications company Vodafone declined 1.6 percent as Jefferies downgraded the stock rating to ‘hold’ and cut the price target, citing “intractable headwinds”.

Renault shares gained 2.3 percent. The French carmaker said it was studying the option of creating two separate entities, one specializing in the development and research of electric vehicles (EVs).

Germany’s Deutsche Telekom AG rose more than 1 percent after it reported quarterly core profit and revenue above market estimates.

Real estate investment company Deutsche EuroShop added 1 percent after its first quarter funds from operations adjusted for measurements and special effects rose 39 percent from last year.

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