Energy shares boost European equities ahead of inflation data

BY Reuters | ECONOMIC | 07/04/22 03:26 AM EDT

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July 4 (Reuters) - European shares rose on Monday, led by shares of oil and gas companies, with investors awaiting eurozone inflation data after a red-hot consumer price report last week cemented the case for rate hike by the European Central Bank (ECB).

The continent-wide STOXX 600 index was up 0.8% by 0716 GMT, after falling last week on worries about a potential global economic slowdown.

A gauge of eurozone lenders fell 0.4% after a media report said the ECB would discuss blocking banks from multibillion-euro windfall profits as interest rates rise. UK energy giant BP Plc jumped 3.6% to lead gains among European oil and gas companies. They were followed by a 1.3% rise in travel and leisure companies.

The producer price data is due at 0900 GMT, while the ECB will release the minutes of their last rate meeting on Thursday.

Overall, trading volumes are expected to remain lighter-than-usual due to a U.S. market holiday.

Among individual stocks, Grafton Group slid 5.9% after the building materials supplier said Gavin Slark would step down as chief executive officer after 11 years in the role. (Reporting by Devik Jain in Bengaluru; editing by Uttaresh.V)

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