Europe midday: Shares muted as investors mull euro zone CPI data, earnings

The pan-European Stoxx 600 index was down 0.09% with travel and retail the biggest gainers. All major regional bourses had surrendered morning gains.

Data from the EU's statistics agency Eurostat showed the cost of living in the Eurozone dipped last month as energy and services prices fell back. The annual rate of increase in the euro zone's Consumer Price Index dipped from an upwardly revised 2.0% for May to 1.9% in June.

"Investors are upbeat as they look to the start of the quarterly earnings season. Numbers are expected to show an improvement as businesses across the continent reopened following the pandemic," said OANDA analyst Sophie Griffiths.

"Today’s move higher comes following steep losses in the previous session as investors fretted about rising covid cases. In many countries, vaccination rates still aren’t at levels where the threat of another lockdown can be avoided. As such, the covid risk to the market still exists. Recent lockdowns in parts of Asia are serving as a reminder of that."

In equity news, Swedbank rose 3.4% after it reported a better-than-expected profit amid a booming mortgage market and record levels of commission income.

UK home repairs and improvements business HomeServe saw its shares rise as the firm backed its full-year guidance on Friday ahead of its annual meeting.

Cartier maker Richemont was up as quarterly constant-currency sales more than doubled, lifted by a strong performance in the Americas from its jewellery brands.

Sweden’s Ericsson slid 7.5% after it reported second-quarter core earnings below market estimates, hit by a decline in sales in mainland China.

Sales, marketing and support services group DCC gained 2.44% after saying it traded "very well" in the first quarter, with operating profit growth well ahead of the prior year and modestly ahead of expectations.

Premier Inn owner Whitbread also rallied after Peel Hunt upgraded the shares to ‘buy’ from ‘add’, saying they have been oversold on reopening fears.

Travel and leisure stocks were on the up, recovering from Covid-related losses earlier in the week. British Airways parent IAG, InterContinental Hotels, engine maker Rolls-Royce, Cineworld, TUI, Wetherspoons and Wizz Air all advanced.

Burberry shares fell 3.3% despite the British luxury brand reporting a return to pre-pandemic sales levels as investors fretted about the impending departure of chief executive Marco Gobbetti and warnings of foreign exchange headwinds later in the year.