European Shares Surge Amid Positive U.S. Retail Sales Data

European shares witnessed gains for the fourth consecutive session, driven by strong U.S. retail sales data and positive global market sentiment. The STOXX 600 reached two-week highs, with Italy's FTSE MIB outperforming. Investors anticipate next week’s Jackson Hole event, which could signal further economic direction.

European shares rallied for the fourth consecutive session on Friday, buoyed by strong U.S. retail sales data that uplifted global market sentiment. The pan-European STOXX 600 index rose 0.3% to hit two-week highs, heading for its best week since May 6, while London's FTSE 100 dipped 0.2% despite a rise in British retail sales.

Nearly all regional bourses traded in positive territory, with Italy's FTSE MIB leading the gains with a 2.1% increase. The automobile sector saw a 1.3% rise, driven by gains in Ferrari and Stellantis, the latter achieving a 3% rise despite ongoing legal issues in the United States.

The robust U.S. retail data mitigated fears of an imminent recession, which had previously unsettled markets in early August following a weak U.S. jobs report. Investors are now looking forward to the Jackson Hole event in Wyoming, where Federal Reserve Chair Jerome Powell might hint at future rate cuts.

(With inputs from agencies.)