European stock markets gave back early gains, yet remained close to record levels, as European equity funds recorded their strongest weekly inflows in half a year.
The Stoxx Europe 600 index closed 0.2% lower, erasing earlier advances, following data showing U.S. retail sales fell by the most in over a year in July. On Friday, media shares led gains, while insurance and energy stocks also performed well. Healthcare and personal care stocks lagged behind.
Meanwhile, further signs of easing inflation alleviated concerns that the Federal Reserve might raise interest rates next month. A report from Bank of America, citing EPFR Global data, indicated that European stock funds attracted $1.2 billion in the week ending August 12, the highest since February.
European equity markets have seen a subdued week. Following a strong second-quarter earnings season, trading volumes have declined in the summer, and the market lacks fresh catalysts. The Stoxx Europe 600 index is now just a step away from the all-time high set on Monday.
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