European markets higher as euro zone inflation rises
Istanbul, July 31 (Hibya) - European markets maintained positive momentum on Wednesday, trading higher after euro zone inflation rose unexpectedly.
The Stoxx 600 index was up 0.86 percent at 12:18 p.m. London time, with technology stocks jumping 2.7 percent following the sector’s mixed performance on Wall Street on Tuesday.
The European Union's statistics agency said Wednesday that headline price rises in the 20-nation euro zone rose to 2.6 percent in July from 2.5 percent in June.
It comes after the euro zone's second-quarter gross domestic product came in at 0.3 percent on Tuesday, slightly higher than expected.
Corporate earnings also remain in focus. HSBC shares rose 2 percent after the bank recorded a narrow decline in pretax profit in the first half of the year but outperformed analyst expectations. The bank also announced a $3 billion share buyback.
Sportwear giant Adidas nudged higher after posting 19 percent quarterly growth in European sales, though the decline of its Kanye West-founded Yeezy line pulled down North America’s performance.
In the U.S., the Federal Reserve is expected to keep interest rates steady on Thursday. However, any forward guidance it provides will be more important, with markets currently pricing in a 100 percent probability of a rate cut in September.