European stocks edged higher Friday, consolidating after a generally positive week, as investors digested regional inflation and growth data.
At 03:05 ET (07:05 GMT), the DAX index in Germany climbed 0.3%, the CAC 40 in France gained 0.1% and the FTSE 100 in the U.K. rose 0.2%.
The three benchmark indices are on track to record weekly gains, with the French CAC-40 almost 2% higher, recovering amid political turmoil.
U.K. economy growth stagnates
The U.K. economy showed signs of a summer slowdown as July gross domestic product came in flat, with growth stagnating following a relatively robust first half of 2025, during which the British economy expanded by 0.7% in the first quarter and 0.3% in the second.
According to data released Friday by the Office for National Statistics, the economy registered no growth in July, easing from the 0.4% expansion recorded in June.
Elsewhere, German inflation rose to 2.1% in August, the federal statistics office said on Friday, confirming preliminary data.
German consumer prices, harmonised to compare with other European Union countries, had risen by 1.8% year-on-year in July.
Similar data from France and Spain are also set to confirm that inflation remains largely under control within the eurozone.
The European Central Bank left rates unchanged on Thursday and maintained an upbeat view on growth and inflation, dampening expectations for any further cut in borrowing costs.
Across the pond, U.S. CPI came in largely as expected on Thursday, pointing to the Federal Reserve resuming its easing cycle with a 25 basis-point cut next week.
Banco Sabadell rejects BBVA’s bid
Banco de Sabadell’s (BME:SABE) board has unanimously rejected BBVA’s (BME:BBVA) hostile takeover bid, urging shareholders not to tender their stock, in a move that sets up a prolonged standoff between two of Spain’s largest lenders.
This decision came just a few days after BBVA formally launched its offer for Sabadell shares.
Sabadell’s directors said the deal undervalues the bank, overstates potential cost savings, and leaves its shareholders exposed to risks tied to execution and regulatory limits.
The board also cited Spain’s regulatory restrictions on large bank mergers as a reason to resist.
Crude continues to fall
Oil prices fell Friday, adding to the previous session’s sharp losses on concerns about the possible softening of U.S. demand as well as oversupply worries.
At 03:05 ET, Brent futures dropped 0.7% to $65.88 a barrel, and U.S. West Texas Intermediate crude futures fell 0.8% to $61.85 a barrel.
Oil fell nearly 2% on Thursday, but the crude benchmarks are still on course for weekly gains after strength at the start of the week on the potential for disruptions to output or trade flows from conflict and war.
An Energy Information Administration report on Wednesday said U.S. crude stocks rose last week by 3.9 million barrels to 424.6 million barrels, suggesting demand in the largest energy consumer in the world is set to slow as the year progresses.
Additionally, the International Energy Agency said in its monthly report world oil supply would rise more rapidly than expected this year due to planned output increases by the Organization of the Petroleum Exporting Countries and allies like Russia, a grouping known as OPEC+.
Source :
https://www.investing.com/news/stock-market-news/european-stocks-just-higher-inflation-growth-data-in-spotlight-4236447
