Europe open: US CPI data boosts Stoxx

12th Jul 2024 08:02

(Sharecast News) - European shares opened higher on Friday, with sentiment buoyed by an unexpected fall in US inflation that raised hopes of a rate cut in September.

The pan-European Stoxx 600 index was up 0.22% to 520 in early deals after the US consumer price index fell by 0.1% in June from the previous month for an annual rate of 3% against expectations of an increase of 0.1% and 3%.

"The news convinced investors that a September rate cut is now firmly on the cards, with the consensus of a likely reduction now topping 90%," said Interactive Investor head of markets Richard Hunter.

Investors will now eye US producer price index data later today along with major US banks posting quarterly earnings.

In equity news, Sweden's Lifco surged after quarterly earnings pleased investors.

Reporting by Frank Prenesti for Sharecast.com