BRUSSELS/FRANKFURT/PARIS (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.
The euro held near multi-week highs against the dollar after Eurostat data showed annual consumer inflation in the euro zone rose to 2.9 percent in July from 2.8 percent 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 percent in July from 1.8 percent in June, according to preliminary estimate from INSEE. The rate was forecast to remain unchanged at 1.8 percent.
Elsewhere, U.K. 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 percent after rising 2.2 percent in June. Prices were expected to grow 1.9 percent.
The pan-European STOXX 600 Index jumped as much as 1 percent in early trading but turned lower as the day progressed, closing down by 0.1 percent at 649.19.
The U.K.'s FTSE 100 Index also dipped by 0.3 percent, although the German DAX Index inched up by 0.1 percent and the French CAC 40 Index rose by 0.3 percent.
German sensor and radar maker Hensoldt plunged by 5 percent 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 also declined despite the company surpassing its second quarter earnings forecasts.
GKN Aerospace owner Melrose Industries also tumbled after it warned of additional exceptional costs linked to chemical tank incident at its Garden Grove facility in the United States.
On the other hand, France's Saint-Gobain soared by nearly 7 percent after confirming its 2026 outlook.
Engie also surged by 4 percent. The utility raised its full-year guidance after reporting better-than-expected first-half earnings.
Lender Credit Agricole also show up by 4 percent after posting better-than-expected results for the second quarter.
Swiss specialty chemicals company Clariant also rallied after it second quarter adjusted earnings beat forecasts.
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