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European stocks close out first half of 2021 up over 13%, dip on final day of second quarter

European stocks posted solid gains for the first half of 2021, but dipped slightly on the final trading day of the second quarter amid persistent concerns over the coronavirus pandemic and rising inflation.

The pan-European Stoxx 600 provisionally closed down by 0.8% on Wednesday, with autos shares sinking 1.9% to lead the losses. The benchmark was still up over 13% year-to-date, however.

European investors reacted to a host of economic data on Wednesday. U.K. first-quarter GDP was confirmed at -1.6% quarter-on-quarter, slightly below expectations, while business investment fell 10.7% quarterly as the country endured stringent lockdown measures.

The Office for National Statistics also revealed that British household savings grew sharply during the period, lifting hopes of pent-up consumer spending as the economy reopens.

Euro zone inflation cooled in June to 1.9% from 2.0% in May, in line with forecasts and the European Central Bank’s target of “close to but below 2%.” However, it is expected to spike above 2.5% again towards the end of the year, according to the ECB’s latest projections.

Reference: CNBC