* Pan-European FTSEurofirst 300 index up 0.7 pct
* Hugo Boss shares fall about 10 pct on poor outlook
* Energy stocks track higher crude oil prices
By Atul Prakash
LONDON, Oct 16 (Reuters) - European shares extended the previous session's rally on Friday, tracking strong gains on Wall Street and in Asia, as some U.S. data releases eased concerns about the pace of recovery in the world's biggest economy.
However, Hugo Boss shares slumped nearly 10 percent after the fashion house cut its 2015 sales and profit outlook as a slowdown in China and more hesitant tourist shoppers in the United States hurt its third-quarter results.
The pan-European FTSEurofirst 300 index was up 0.7 percent at 1,435.47 points by 0909 GMT after closing 1.4 percent higher in the previous session. The index headed for a positive weekly close after gaining 4.4 percent last week.
"There was a slight uptick in inflation and some positive signs coming out of the U.S. labour market, although it probably still won't be enough to get the Fed to raise rates this year," said Hantec Markets analyst Richard Perry.
U.S. consumer prices dropped the most in eight months as gasoline costs fell in September, but a rise in core CPI, which strips out food and energy costs, suggested inflation was starting to firm.
Also, the number of Americans filing new applications for unemployment benefits fell back to a 42-year low last week.
"Europe's main indices are attractively valued on a price to earnings basis and with no shocks in the peak period of earnings reporting season in the U.S., it appears that equity investors may have found a base to build upon after the rout in August and September," Lorne Baring, managing director of B Capital Wealth Management, said.
"Easy monetary conditions are clearly going to remain for some time and that is also bolstering sentiment at the moment. We would expect further gains after a rough period for global investors."
Energy stocks were in demand after crude oil prices rose to snap a week-long decline as investors bet falling U.S. production would cut a global surplus, while the country's gasoline and distillate inventories dropped more than expected.
The STOXX Europe 600 Oil and Gas index rose 1.6 percent, the top sectoral gainer, helped by a 1.8 to 3.2 percent rise in shares of BP, Total and Tullow Oil .
Carrefour shares rose 3.7 percent after Europe's largest retailer reported on Friday an acceleration in third-quarter sales, reflecting an improving performance in southern Europe, good momentum in France and resilience in Brazil despite a slowing economy.
Nestle fell more than 2 percent after the world's largest packaged food company lowered its full-year outlook, as a Maggi noodle recall in India knocked sales and undercalculated U.S. Skin Health rebates weighed on the Swiss company's profits.
Europe bourses in 2015: link.reuters.com/pap87v
Asset performance in 2015: link.reuters.com/gap87v
Today's European research round-up (Additional reporting by Sudip Kar-Gupta; Editing by Tom Heneghan)