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July 1 Reuters European shares closed flat on Friday as gains in defensives countered a selloff in semiconductor and commoditylinked stocks, while investors prepared for the European Central Bank39;s ECB first interest rate hike in over a decade this month.

Data on Friday showed euro zone inflation came in higher than expected and hit yet another record high in June. That firmed the case for an ECB rate hike as the inflation peak could still be months away.

Aggressive central bank moves to curtail inflation have left investors worried about the likely hit to economic growth. The STOXX 600 lost 1.4 this week and has shed more than 16 this year, as worries from stubborn inflation to China39;s slowing economy and Russia39;s invasion of Ukraine curbed risk appetite.

The door is open for the ECB to being significantly more aggressive to try and stand down on inflation, said Michael Brown, head of market intelligence at Caxton.

The continentwide STOXX 600 index cut session losses of up to 1, a day after marking its worst quarter since the pandemicled selling of early 2020 and tracking a dour Wall Street session.

Most major European bourses ended in positive territory.

What we could be seeing in markets is a little bit of a dead cat bounce after yesterday39;s pretty…