European stocks higher as investors await U.S. inflation
Istanbul, July 11 (Hibya) - European stocks were higher Thursday morning, extending gains as global markets await the next U.S. inflation reading. The Stoxx 600 index was up 0.5 percent, though sector gains were muted. Household goods stocks led the pack, up 0.45 percent.
Thursday’s U.S. inflation report could cement expectations that the U.S. Federal Reserve will cut interest rates in the coming months. Recent economic releases have suggested that inflation and economic growth are cooling, including last week’s report that unemployment in June ticked up to 4.1 percent.
The consumer price index report for June will be released at 8:30 a.m. ET. Meanwhile, in Europe, flash figures revealed a promising growth of 0.4 percent in the U.K. economy in May, bouncing back from a stagnant April and surpassing the 0.2 percent forecast.
The British pound demonstrated its resilience by climbing 0.1 percent to its highest level against the U.S. dollar in four months, also showing a slight increase against the euro. This positive trend was further bolstered by Goldman Sachs' decision to upgrade its growth forecast for the U.K. after the Labour Party’s decisive victory in the country’s general election.
Overnight, Japan’s Nikkei 225 crossed the 42,000 mark for the first time amid a broader rise in Asia-Pacific markets after U.S. Big Tech rallied overnight on optimism over Fed rate cuts.
U.S. stock futures were little changed Wednesday night after both the S&P 500 and Nasdaq Composite closed at new all-time highs.
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