European markets close higher as euro zone inflation falls less than expected; Daimler Truck up 18%

This is CNBC's live blog covering European markets.

LONDON — European markets closed higher on Friday to start the new trading month after a winning February, as investors assessed fresh inflation data out of the euro zone.

The pan-European Stoxx 600 ended the session up 0.6%. Tech stocks led gains, adding 1.6%, while insurance fell 0.7%.

February's flash euro zone inflation reading showed the headline consumer price index fell to 2.6% from January's 2.8%. Economists polled by Reuters had forecast a headline reading of 2.5%.

The European Central Bank will be monitoring Friday's reading closely as it charts its course of future interest rate cuts, with economic growth remaining stagnant across much of the bloc. The market expects the ECB to begin cutting in June, alongside the Fed.

Earnings were the key driver of individual share price action in Europe, with Grifols, Daimler Truck and ITV all posting double-digit gains on the back of strong results.

In Asia-Pacific, Japan's Nikkei 225 closed at a fresh record high on Friday, just short of the 40,000 level, while Chinese markets rose on the back of fresh manufacturing data from the mainland.

Stateside, U.S. stocks were higher after Wall Street wrapped a fourth consecutive winning month, with the tech-heavy Nasdaq Composite reaching its first closing record since November 2021.

U.S. stocks open flat

U.S. stocks were flat Friday after the market wrapped up its fourth straight winning month.

The Nasdaq was up 0.2% in early deals, while the S&P 500 added 0.1%. Meantime, the Dow Jones Industrial Average slipped 0.1%.

— Karen Gilchrist

Biggest movers: Grifols up 18%, Daimler Truck up 17%

Grifols shares surged more than 18% by mid-afternoon to lead the Stoxx 600 after the Spanish pharmaceutical company said it expects to more than double its operating cash flow generation in 2024.

Daimler Truck shares gained more than 17% after raising its dividend and announcing a new 2 billion euro ($2.16 billion) share buyback program on the back of better-than-expected pre-tax 2023 earnings.

Shares of British broadcaster ITV jumped 14% after announcing the sale of its 50% stake in streaming service Britbox International to BBC Studios for £255 million ($322.04 million).

At the bottom of the European blue chip index, Swiss transport and logistics firm Kuehne & Nagel fell 14% after reporting that operating profits more than halved on the back of higher costs and weakness in its ocean freight division.

- Elliot Smith

Stocks pare gains after euro zone inflation cools less than expected in February

European markets gave back some of the morning's gains after flash euro zone inflation reading showed the headline consumer price index fell to 2.6% from January's 2.8%. Economists polled by Reuters had forecast a headline reading of 2.5%.

Core inflation, stripping out volatile components of energy, food, alcohol and tobacco, was 3.1% — above the 2.9% expected.

- Elliot Smith

Daimler Trucks shares hit new record high on earnings

Shares of Daimler Truck hit a fresh all-time high Friday, spiking more than 13.5% in early deals, after posting record full-year profit and announcing a 2 billion euro ($2.16 billion) share buyback program.

The German truck maker posted better-than-expected pre-tax earnings of $5.5 billion euros for 2023, up 39% on the previous year's 4.4 billion. Analysts had expected EBIT (earnings before income tax) of 5.2 billion.

The company also said it would conduct the buyback program over the course of the coming 24 months and proposed a dividend of 1.9 euros per share for 2023, up from 1.3 euros a year earlier.

Daimler's Chairman Martin Daum described 2023 as a record year for the company in a statement, but cautioned that revenue and earnings were likely to be flat in 2024 amid "difficult economic conditions."

— Karen Gilchrist

Morning movers: Grifols, ITV, Daimler Truck surge

Grifols shares surged more than 19% in early trade to lead the Stoxx 600 after the Spanish pharmaceutical company said it expects to more than double its operating cash flow generation in 2024.

Shares of British broadcaster ITV jumped more than 14% after announcing the sale of its 50% stake in streaming service Britbox International to BBC Studios for £255 million ($322.04 million).

Daimler Truck shares gained 13% after raising its dividend and announcing a new 2 billion euro ($2.16 billion) share buyback program on the back of better-than-expected pre-tax 2023 earnings.

At the bottom of the European blue chip index, Swiss transport and logistics firm Kuehne & Nagel fell 13% after reporting that operating profits more than halved on the back of higher costs and weakness in its ocean freight division.

- Elliot Smith

Europe opens in positive territory

The pan-European Stoxx 600 was up 0.4% in early trade, with tech stocks adding 1.1% to lead gains as all sectors and major bourses advanced.

Germany's DAX was the strongest regional performer with a 0.7% climb.

Here are the opening calls

Britain's FTSE 100 is set to open around 61 points higher at 7,691, Germany's DAX is seen up around 112 points at 17,790 and France's CAC 40 is expected to add around 42 points to 7,969, according to IG data.

CNBC Pro: Investors should move money out of cash and into fixed income, Franklin Templeton strategist says

Investors should move out of cash and into fixed income with some duration, said Franklin Templeton's chief market strategist, Stephen Dover.

"Inflation probably won't get quite as low as market expectations and interest rates won't drop quite as far as market expectations," Dover said, adding that "this is is an opportunity, particularly in the fixed income markets, to pick up a little bit of yield."

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— Lee Ying Shan