European shares rise on Thursday

European shares opened higher on Thursday, buoyed by favourable inflation data and gains in the insurance sector. The pan-European STOXX 600 index rose by 0.2 per cent by 0710 GMT, nearing a two-week high and on track for its third consecutive session of gains.

The insurance sector led the gains, driven by a 10.3 per cent increase in Admiral’s stock. The British motor and home insurer reported a 32 per cent rise in first-half pre-tax profit, surpassing expectations.

Market optimism was further fuelled by recent mild US inflation readings, which bolstered expectations for a Federal Reserve rate cut in September—the first in 4.5 years.

In the UK, the FTSE 100 traded flat despite data showing that Britain’s economy grew by 0.6 per cent in the second quarter, aligning with economists’ forecasts.

Among individual stocks, Dutch payments company Adyen saw a 6.4 per cent increase after reporting better-than-expected half-year core profits. Conversely, Danish wind farm developer Orsted’s shares fell by 7.2 per cent following the release of its second-quarter results.

Attribution: Reuters

Subediting: M. S. Salama