© Reuters. An H&M logotype is seen at a shop, as the spread of the coronavirus disease (COVID-19) continues, in central Stockholm, Sweden April 2, 2020. TT News Agency/Fredrik Sandberg via REUTERS
(Reuters) – European shares edged higher on Thursday, lifted by H&M (ST:)after the Swedish retailer posted a stronger-than-expected profit, although hawkish remarks from a slew of top central bankers kept a lid on risk sentiment.
The pan-European index was up 0.1% by 0704 GMT, a day after top central bankers, including U.S. Federal Reserve Chairman Jerome Powell, signalled further policy tightening was required to tame inflation.
Shares of H&M climbed 7.3% to an over one-year high after the world’s second-biggest fashion retailer topped expectations for quarterly operating profit and said its third-quarter sales were also off to a good start.
The move pushed Europe’s retail sector 1.1% higher, while automakers were the second-biggest sectoral gainers.
Renault (EPA:) advanced 4.2% after the French carmaker raised its full-year financial outlook following the success of its recent launches.
Meanwhile, preliminary data showed Spain’s consumer prices in June rose 1.9% year-on-year, a hair’s breadth from the 2% threshold for the first time since March 2021.