European shares end up after tame US price data

European shares rose yesterday after tamer-than-expected inflation data went some way to calm nerves about more US interest rate hikes, while lower oil prices and merger announcements contributed to gains.

Britain's Hilton Group surged after announcing that US-based Hilton Hotels Corp. was in talks to buy its hotels in a deal that could be worth £3.6 billion.

The news lifted the travel and leisure sector, with Intercontinental Hotels also among the region's top gainers.

The pan-European FTSEurofirst 300 index posted an unofficial close that was up 0.3 per cent to 1,195.96 points, ending the week around one per cent lower. The Dow Jones industrial average was up 0.27 per cent at 10,244.1 points by 1543 GMT.

European and US equity markets have recoiled in recent sessions on fears that the Federal Reserve would continue raising interests rates for the foreseeable future and that a strong inflation number would add to these worries.

But excluding food and energy costs, US consumer prices rose a mere 0.1 per cent for the fifth straight month.