European stocks advanced on Tuesday, with underlying sentiment boosted by M&A talk and hopes for a softer U.S. inflation reading.
The U.S. inflation due out later in the day is expected to show a continued slowdown in the annual rate of consumer price growth to 8.1 percent in August from 8.5 percent in July.
Despite the anticipated softening, the Federal Reserve is expected to raise interest rates by 75 basis points next week to make sure inflation is extinguished.
Closer home, German consumer price inflation accelerated as initially estimated in August, latest figures from Destatis showed.
The consumer price index rose 7.9 percent year-on-year in August, faster than the 7.5 percent increase in July. That was in line with flash data published on August 30.
The German ZEW economic sentiment index worsened to -61.9 in September versus -60.0 expected.
The U.K. unemployment rate hit its lowest level in 48 years in three months to July, separate data published by the Office for National Statistics showed earlier today.
The unemployment rate fell to 3.6 percent in three months to July, the lowest since May to July 1974. The rate was seen at 3.8 percent.
The pan European Stoxx 600 edged up 0.2 percent to 428.48 after rallying 1.8 percent in the previous session.
The German DAX inched up 0.1 percent, France’s CAC 40 index rose 0.3 percent and the U.K.’s FTSE 100 was up 0.1 percent.
British software maker Aveva Group rallied nearly 3 percent amid reports that France’s Schneider was nearing a deal to buy out the company.
M&C Saatchi, an advertising and marketing firm, declined 2 percent after it has once again rejected the takeover offer by AdvancedAdvt Limited, an acquisition vehicle company.
Ocado Group shares plunged almost 11 percent after Ocado Retail, a joint venture between Ocado Group and Marks & Spencer Group, flagged a dip in full-year sales. Marks & Spencer shares fell 2 percent.
Media company Future Plc soared 6 percent after saying that it expects full year adjusted operating profit to be at the top end of market expectations.
UBS advanced 1.3 percent. The Swiss banking group plans to raise dividend and expects 2022 share repurchases to exceed $5 billion.
Business News
European Shares Rise Ahead Of US CPI Data
2022-09-13 09:36:03
