European Stocks Extend Tuesday Gains After Slower U.S. Inflation
(MENAFN) European equity markets closed mostly higher on Tuesday, buoyed by U.S. inflation data that came in below forecasts, with the notable exception of Germany’s DAX index, which dipped.
The broad Stoxx 600 index added 0.21% (1.13 points) to finish at 547.89. In London, the FTSE 100 advanced 0.2% to 9,147.81, while Paris’s CAC 40 climbed 0.71% to 7,753.42. Italy’s FTSE MIB 30 saw an uptick of 0.85%, closing at 41,935.42. Spain’s IBEX 35 edged up slightly by 0.02% to 14,859.
Conversely, Germany’s DAX 40 slipped 0.23%, ending at 24,024.78, weighed down by disappointing economic sentiment data.
U.S. inflation for July was reported at 2.7% year-over-year, undercutting the anticipated 2.8%, according to the Bureau of Labor Statistics. The monthly inflation rate also came in at 0.2%.
In portfolio news, Norges Bank Investment Management—the world’s largest wealth fund—continued divesting Israeli companies. As of June’s end, the fund held 61 Israeli firms valued at $2.24 billion. On Tuesday alone, 17 Israeli companies, totaling $143.3 million, were removed from its holdings.
Economic uncertainty persists in Germany as the ZEW institute’s economic sentiment index dropped 18 points month-on-month to 34.7 in August. ZEW President Professor Achim Wambach noted that financial market experts are disheartened by the details of the EU–US trade deal.
This mix of inflation data and shifting investment patterns is keeping European markets cautiously optimistic amid ongoing geopolitical and economic uncertainty.
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