French final June inflation confirmed at 2.5
Ericsson jumps on Q2 sales beat
Norwegian Air shares soar after Q2 EBIT beat
EMS Chemie slumps on H1 sales miss
STOXX 600 up 0.3

July 12 Reuters European shares advanced on Friday and were set for a second consecutive weekly gains on upbeat earnings updates, while U.S. inflation data raised hopes of a September interest rate cut by the Federal Reserve.

The panEuropean STOXX 600 was up 0.3, to hit its highest level since June 13, led by 1.1 gains in the telecom sector.

France39;s CAC 40 outperformed its European peers, rising 0.7 after a volatile week of elections, where leaders of the leftwing New Popular Front are currently discussing potential candidates for prime minister.

Consumer prices in France rose 2.5 yearonyear in June, confirming its preliminary reading, while German wholesale prices fell by 0.6 in June, compared with the same month last year.

U.S. consumer prices unexpectedly fell and the annual increase was the smallest in a year, reinforcing views that the disinflation trend was back on track and drawing the Fed another step closer to cutting rates.

I don39;t know for the Fed but investors definitely got to the evidence that inflation is on a right path to justify a Fed rate cut sooner rather than later, said Ipek Ozkardeskaya, Swissquote Bank39;s senior analyst.

Investors39; focus will now shift to producer prices data at 0830 a.m. ET 1230 GMT for further confirmation of inflation easing in June….