Financials lead gains on European shares

European shares edged higher in early trading on Friday, with EDF surging after its board approved Hinkley Point nuclear project, while Kering gained after positive update from its flagship fashion brand Gucci.

Financials were in demand, with the STOXX Europe 600 Banks index gaining 1.8 percent. Barclays rose 3.8 percent after results, while UBS gained 2.8 percent after beating second quarter earnings.

The pan-European STOXX 600 and the FTSEurofirst 300 indexes both rose 0.4 percent after closing nearly 1 percent lower in the previous session.

EDF rose 10 percent after saying it was confident about the new British government’s commitment to build nuclear reactors in Hinkley Point.

Late on Thursday, shortly after EDF announced its board had given the go-ahead for the controversial project, the government of Britain’s new Prime Minister Theresa May said it wanted to give the project further consideration.

Kering shares rose 6 percent after Gucci posted forecast-beating second-quarter organic sales growth of 7.4 percent, driven by solid demand for the brand’s new looks designed by Alessandro Michele, particularly in Western Europe.

[Source:- Reuters]