Global selloff eases; earnings, U.S. inflation

LONDON — European markets closed higher on Friday as a global stock selloff eased and investors reacted to U.S. inflation data.

The pan-European Stoxx 600 closed 0.9% higher London time, with nearly all sectors and major bourses across the region trading in positive territory.

Construction and material and household goods stocks led gains, up 1.8% and 1.7% respectively. Travel and leisure stocks were also 1.6% higher.

Autos recouped losses from earlier in the day after Germany’s Mercedes Benz said it was narrowing its annual profit margin forecast.

British bank NatWest rose as much as 7.2% in afternoon trade after it reported that its pretax operating profit fell by less than expected in the first half of the year. The London-listed stock closed 7% higher.

European equities have closed lower for the last two sessions amid a sharp downturn in technology stocks stateside.

Overall, Stoxx losses have eased from last week, when the regional index recorded its worst performance since October.

The U.S. personal consumption expenditures price index for June came in as expected, increasing 0.1% from the previous month and up 2.5% annually from a year ago. The data comes ahead of a Federal Reserve meeting next week.

U.S. stocks were higher on Friday, with the Dow Jones Industrial Average climbing 1.6%.

Asia-Pacific markets largely rebounded Friday, as Tokyo’s headline inflation slowed slightly to 2.2% in July from 2.3% in May.