Neutral
European shares rise as cool US inflation data curbs some rate hike fears
European markets experienced modest gains following a softer-than-expected U.S. inflation report, which alleviated some concerns about potential Federal Reserve interest rate hikes. The pan-European STOXX 600 index closed 0.2% higher at 642.1 points, recovering from earlier losses. Basic materials stocks led the rally, rising 2.4% as metal prices increased against a weaker dollar.
Key points
- U.S. consumer inflation slowed more than expected in June, with the annual rate at 3.5%, down from 4.2% in May.
- Escalating U.S.-Iran tensions and elevated crude oil prices capped market gains.
- The STOXX 600 index closed 0.2% higher at 642.1 points, recovering from earlier losses.
- Basic materials stocks led the rally, rising 2.4% as metal prices increased against a weaker dollar.
Sources
AI-generated from public news sources. Not financial advice.
