BRUSSELS/FRANKFURT/PARIS, Aug 1 (Bernama-dpa-AFX) -- After showing a strong move to the upside early in the session, European stocks gave back ground over the course of the trading day on Friday, reported dpa-AFX.
The euro held near multi-week highs against the dollar after Eurostat data showed annual consumer inflation in the eurozone rose to 2.9 per cent in July from 2.8 per cent in June on higher energy costs, bolstering the case for the European Central Bank to raise interest rates again in September.
French consumer price inflation accelerated to 2.1 per cent in July from 1.8 per cent in June, according to preliminary estimates from INSEE. The rate was forecast to remain unchanged at 1.8 per cent.
Elsewhere, UK house prices grew at a slower pace in July as geopolitical tensions and fears of interest rate hikes weighed on property demand, data from mortgage lender Nationwide Building Society revealed.
House prices registered an annual increase of 1.8 per cent after rising 2.2 per cent in June. Prices were expected to grow 1.9 per cent.
The pan-European STOXX 600 Index jumped as much as 1 per cent in early trading but turned lower as the day progressed, closing down by 0.1 per cent at 649.19.
The UK's FTSE 100 Index also dipped by 0.3 per cent, although the German DAX Index inched up by 0.1 per cent and the French CAC 40 Index rose by 0.3 per cent.
German sensor and radar maker Hensoldt plunged by 5 per cent amid profit taking after recent strong gains.
Sportswear maker Puma also showed a significant move to the downside after posting lower sales for the second quarter.
Building materials group Holcim declined despite the company surpassing its second-quarter earnings forecasts, while GKN Aerospace owner Melrose Industries tumbled after it warned of additional exceptional costs linked to a chemical tank incident at its Garden Grove facility in the United States.
On the other hand, France's Saint-Gobain soared by nearly 7 per cent after confirming its 2026 outlook.
Engie surged by 4 per cent. The utility raised its full-year guidance after reporting better-than-expected first-half earnings.
Lender Crédit Agricole also climbed 4 per cent after reporting stronger-than-expected second-quarter results.
Swiss specialty chemicals company Clariant rallied after its second-quarter adjusted earnings beat forecasts.
-- BERNAMA-dpa-AFX