European shares hit 1-month high on upbeat earnings, Fed rate-cut hopes
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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%
Updated at 0813 GMT
By Shubham Batra
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 pan-European STOXX 600 .STOXX was up 0.3%, to hit its highest level since June 13, led by 1.1% gains in the telecom sector .SXKP.
France's CAC 40 .FCHI outperformed its European peers, rising 0.7% after a volatile week of elections, where leaders of the left-wing New Popular Front are currently discussing potential candidates for prime minister.
Consumer prices in France rose 2.5% year-on-year 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 don'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 Bank's senior analyst.
Investors' focus will now shift to producer prices data at 08:30 a.m. ET (1230 GMT) for further confirmation of inflation easing in June.
Sweden's Addtech ADDTb.ST hit a record high and was up 12.3% after the technical solutions firm said the outlook for the next quarters is favourable and overall customer activity is stable at a high level.
Ericsson ERICb.ST rose 8.2% after the Swedish telecom gear maker reported a smaller-than-expected 7% drop in second-quarter sales.
EMS Chemie EMSN.S slipped 6.4% as the Swiss nylon manufacturer cut its 2024 sales guidance.
Axfood AXFO.ST dropped 7.9% to the bottom of STOXX 600, as quarterly earnings were negatively impacted by costs associated, with operational disruptions and restructuring of logistics.
Norwegian Air NAS.OL surged 6.1% after reporting second-quarter core earnings above market expectations despite slightly lower demand impacting ticket prices, as the budget airline said it improved its cost level and cash flow.
Aker BP AKRBP.OL, which is partly owned by BP BP.L, reported a lower-than-expected profit for the second quarter and lowered its full-year output outlook. Shares of the Norwegian oil company climbed 2.1%.
The earnings season in the United States will kick off with the big banks, including JPMorgan Chase JPM.N, Wells Fargo WFC.N and Citigroup C.N, reporting before the bell.
Reporting by Shubham Batra in Bengaluru; Editing by Sohini Goswami and Rashmi Aich
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