European shares rise after two

© Reuters. The German share price index DAX graph is pictured at the stock exchange in Frankfurt, Germany, May 31, 2022. REUTERS/Staff

By Susan Mathew

(Reuters) - European shares bounced on Thursday, led by industrial and luxury names, with gains limited by a slide in energy stocks and lingering worries over slowing economic growth.

The pan-European STOXX 600 index rose 0.4% after losing nearly 2% over the last two sessions, with markets keeping a close watch on a spate of economic data for further clues on central bank action.

Volumes are expected to be subdued as London markets are closed for Queen Elizabeth's Platinum Jubilee bank holidays.

French spirits group Remy Cointreau climbed 3.5% on beating full-year profit estimates and providing an upbeat outlook for this year and beyond.

Other luxury stocks followed suit. LVMH, L'Oreal and EssilorLuxottica were up between 1.3% and 2.4%, providing the biggest boosts to the index.

Oil stocks fell as crude prices slipped on some speculation that Saudi Arabia may boost production in response to urging by the United States. TotalEnergies, Shell (LON:RDSa)'s Amsterdam listing and Equinor declined between 1.4% and 1.8%.

An OPEC+ meeting later in the day was also eyed for production clues. [O/R]

Euro zone producer prices data for May, due in the morning session, is expected to indicate that the rise in prices likely slowed month-on-month but gained year-on-year. That would follow data this week that showed euro zone consumer prices rose to a record high.

"Rises in the producer price indices will at least partially be transferred to consumer prices, and that normally takes between 8 and 12 months. This means that CPI will most likely stay on elevated levels for at least another 8 to 12 months," said Teeuwe Mevissen, senior economist, euro zone, at Rabobank.

Swiss consumer price data on Thursday showed inflation increased by the highest level in 14 years during May.

Investors will also be tracking U.S. private employment and weekly jobless claims data due later in the day.

While more jobs are expected to have been added, weekly jobless claims are not seen improving over the previous week. Non-farm payrolls data on Friday could decide how stocks will end this week as investors fret over the pace of monetary policy tightening by the central bank.

Markets have been gripped by slowing growth worries as global central banks scramble to tame surging inflation without tipping economies into recession. The STOXX 600 is on course to end the week about 0.8% lower.

Among other stocks, Scandinavian airline SAS firmed 1.8% on a report that a group of foreign investors is exploring a takeover.

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