Rise in European Stocks

European stocks closed higher on Monday, supported by gains in the healthcare sector and a report showing that inflation in the Eurozone fell again in July. However, data indicating growth limited optimism regarding halting interest rate hikes. The Stoxx 600 index closed up 0.1 percent. The index rose 2 percent in July, marking gains for the second consecutive month. Consumer price growth in the Eurozone was reported at 5.3 percent this month, down from 5.5 percent in June, continuing the downward trend that started in the fall. Excluding energy and unprocessed food, prices rose 6.6 percent after increasing by 6.8 percent the previous month. Another set of data showed that the Eurozone returned to growth in the second quarter of the year. But Germany, the largest country in the Eurozone, recorded no growth, while Italy faced contraction. The markets also received additional support this month from speculation that the European Central Bank might not tighten monetary policy further, alongside some strong earnings reports. Energy sector stocks rose by 1.2 percent, boosted by new licensing plans in the North Sea in the UK for oil and gas companies. The German DAX index closed down 0.1 percent, but it remains near the recent record high levels.