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Feb 19 (Reuters) - European shares edged higher on Friday as
an upbeat earnings report from Hermes boosted confidence in a
broader economic recovery, although the benchmark STOXX 600 was
set to snap a two-week gaining streak on concerns about a rise
in inflation.
The pan-European index .STOXX was up 0.1% by 0808 GMT,
with Hermes shares HRMS.PA jumping 5.7% as the Birkin bag
maker said sales recovered sharply in the fourth quarter.
The stock was among the biggest gainers on the STOXX 600 and
helped lift the European personal goods index .SXQP by 0.7%.
Still, the STOXX 600 was set to end the week nearly flat
following three straight sessions of declines as optimism around
a better-than-expected earnings season gave way to fears that
rising inflation could lead central banks to start tapering a
raft of stimulus packages.
All eyes later in the day will be on flash readings of
business activity data from across the euro zone.
In company news, French carmaker Renault RENA.PA fell 3.5%
after posting a record annual loss of 8 billion euros ($9.68
billion).