European shares edge higher as H&M shines

European shares edged higher on Thursday, lifted by H&M 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 STOXX 600 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 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.