FX.co ★ European Shares See Cautious Gains Ahead Of US Core PCE Reading

European shares experienced a slight increase on Friday due to positive quarterly earnings reports from U.S. tech companies Microsoft and Alphabet. Moreover, the European Central Bank (ECB) reported a decrease in Eurozone consumers' inflation expectations for the following year in a March survey.

However, consumer confidence in France unexpectedly fell in April according to a survey released by the INSEE statistical office. The consumer sentiment index dropped to 90 from 91 in March, contradictorily to economists' predictions of a rise to 92.

Meanwhile, a survey by the GfK market research group showed an increase in British consumer sentiment in April due to slowing inflation and expectations of tax cuts. The consumer confidence index rose to -19 from -21 in March, outperforming economists' forecast of -20.

Later today, the core Personal Consumption Expenditures (PCE) Price Index, the preferred inflation measure of the U.S. Federal Reserve, will be released.

Following a 0.6 percent decrease on Thursday, the pan-European STOXX 600 grew by a half percent to 504.98. Similarly, Germany's DAX rose by 0.7 percent, France's CAC 40 by 0.2 percent, and the U.K.'s FTSE 100 by 0.4 percent.

Despite raising its full-year sales outlook, defense firm Saab AB's shares fell by 3 percent. Home appliance maker Electrolux saw a 2.4 percent share rise after reporting a smaller than anticipated Q1 loss. Furthermore, ball-bearing manufacturer SKF's shares climbed 3 percent due to surpassing Q1 core profit estimates.

In London, mining conglomerate Anglo American's shares slightly fell after rejecting a buyout proposal from BHP. Meanwhile, Natwest's shares soared 4.6 percent as its Q1 income and profit decline were less than expected.

Engineering firm Senior Plc reported a Q1 revenue increase and upheld its full-year guidance, causing its shares to rise by 1 percent. However, education company Pearson saw a 1.7 percent share decline due to subdued Q1 total underlying sales growth.

Meanwhile, French building materials group Saint-Gobain saw its shares spike 5.6 percent following its Q1 revenue surpassing expectations. Aircraft manufacturer Airbus, however, observed a 2.4 percent decline in shares due to lower than expected first-quarter operating profit and cash flow.

Shares in construction and infrastructure company Vinci rose 1.1 percent after confirming its forecasts for the year. Aerospace supplier Safran's shares fell 1.9 percent, even though Q1 revenue was higher and FY24 outlook was reaffirmed.

Lastly, shares in German conglomerate Thyssenkrupp shot up 10 percent after the company agreed to sell a 20 percent stake in its steel business to EP Corporate Group (EPCG).