European shares inched higher on Friday, clawing back some declines from Thursday’s near 2% slump after the European Central Bank’s hawkish surprise, saying it would stop pumping money into financial markets this summer.

The pan-European STOXX 600 index firmed 0.6% by 0810 GMT, following a 1.7% plunge in the previous session.

The ECB on Thursday paved the way for an increase in interest rates as soaring inflation outweighed concerns about the fallout from Russia’s invasion of Ukraine.

Francois Villeroy de Galhau, a member of the ECB, said on Friday there is no recession in Europe and that the economy was still growing despite the impact on activity caused by the war.

Among stocks, Italian fashion group Tod’s gained 3.3% after expressing optimism for 2022 despite global uncertainties after returning to an operating profit last year.

EssilorLuxottica added 3.6% after the luxury eyewear group reported its best quarter of 2021 with all regions exceeding pre-pandemic sales.

Lanxess strengthened 4.7% after the German speciality chemicals maker issued quarterly profit outlook above expectations.