European shares extend gains, but Hugo Boss slumps

European shares extended the previous session’s rally on Friday, tracking strong gains on Wall Street and in Asia, as some US data releases eased concerns about the pace of recovery in the world’s biggest economy.

US consumer prices fell the most in eight months as petrol costs fell in September, but a rise in core CPI, which strips out food and energy costs, suggested inflation was starting to firm. Also, the number of Americans filing new applications for unemployment benefits fell back to a 42-year low last week.

The pan-European FTSEurofirst 300 index was up 0.5 per cent at 1,431.91 points by 0707 GMT after closing 1.4 per cent higher in the previous session.

However, Hugo Boss shares slumped 9 per cent after the fashion house cut its 2015 sales and profit outlook as a slowdown in China and more hesitant tourist shoppers in the United States hurt its third-quarter results.