Europe close: Stocks trade higher following US inflation data

13th Aug 2024 15:42

(Sharecast News) - European stocks closed higher on Tuesday following better-than-expected inflation data Stateside.

As of 1630 BST, the benchmark Stoxx 600 was up 0.46% at 501.40, while the DAX advanced 0.44% to 17,804.53, the CAC 40 was 0.29% higher at 7,271.67 and the IBEX 35 surged 0.72% to 10,723.20.

Market participants celebrated news that US producer prices rose by less than expected in July, according to the Bureau of Labor Statistics. Producer prices increased 0.1% to 144.67 points in July, up from 144.53 in June but short of preliminary estimates for a 0.2% month-on-month uptick. On an annualised basis, PPI was up 2.2%.

Closer to home, annual inflation hit 2.8% in Spain last month, according to the National Statistics Institute, in line with preliminary estimates. On a monthly basis, however, inflation declined 0.5%.

Elsewhere, German business sentiment deteriorated sharply in August, according to a survey released on Tuesday. The ZEW indicator of economic sentiment fell 22.6 points from July to 19.2. This marked the worst decline since July 2022. The indicator for the assessment of the current economic situation in Germany also declined, by 8.4 points to -77.3 in August.

However, Europe's main focus this week will be on eurozone GDP and employment numbers, which will be due out on Wednesday.

Reporting by Iain Gilbert at Sharecast.com