European stocks edged higher, extending gains into a second day, ahead of a key US inflation print that’s expected to show price pressures continuing to ease.
The Stoxx 600 rose 0.4% as of 8:55 a.m. in London, with consumer products and construction stocks outperforming, while energy shares lagged. Chip stocks including ASML Holding NV contributed to gains after a rally in the world’s largest tech stocks lifted global shares to record highs.
The UK’s FTSE 100 Index rose 0.2% after data showed the country’s economy grew 0.4% month-on-month in May, twice the pace that was expected. France’s CAC 40 gained 0.6% as investors continued to creep back to a market that’s been battered by political turmoil in recent weeks.
US core CPI is seen rising 0.2% in June for a second month in what would be the smallest back-to-back gains since August. That could strengthen bets on a September interest rate rise from the Federal Reserve, especially after dovish comments Wednesday by Fed Chair Jerome Powell who said he believes inflation is receding.
Focus now is on the upcoming earnings season, with big banks kicking off US second-quarter results. For Europe, analysts have been revising earnings slightly lower, and some reckon earnings disappointment could be the catalyst for some equity-market softness, especially after France’s election-linked turbulence stalled this year’s rally.
