European stocks rise 0.2% as oil prices decline and inflation eases

European stocks rose modestly on Thursday as oil prices eased, reflecting expectations of declining demand and softer U.S. inflation data that alleviated fears of a near-term interest rate hike by the Federal Reserve. The pan-European STOXX 600 index increased by 0.2 percent to reach 660.84, recovering slightly after a 0.2 percent dip the previous day.

This market movement comes amid growing concerns about the global economy. The British pound faced selling pressure after the U.K. economy's growth slowed in the second quarter. Official figures revealed that real gross domestic product (GDP) grew by 0.4 percent from the previous quarter, down from 0.6 percent in the first quarter. Year-on-year, GDP increased by 1.2 percent, slightly exceeding economists' expectations of a 1.1 percent rise.

Individual stock performance varied widely across Europe. The German DAX gained 0.5 percent, while France's CAC 40 rose by 0.3 percent. However, the U.K.'s FTSE 100 fell by 0.3 percent, dragged down by losses in energy stocks like BP, which dropped 1.7 percent, and Shell, down 1 percent. In contrast, the Costain Group surged by 3.4 percent after reporting strong half-year results that reaffirmed its annual guidance.

Looking ahead, the mixed performance of individual companies highlights a broader trend in the European market. Danish shipping giant Maersk saw a significant 4.4 percent increase after it raised its full-year outlook following a strong second-quarter profit. As companies continue to navigate economic uncertainties, investors will closely monitor upcoming earnings reports and economic indicators for further clues about the trajectory of both the European and global economies.