European Shares Rise Amid Investor Caution on US Economic Data

European stocks nudged higher as investors awaited crucial U.S. economic data, anticipating hints about the Federal Reserve's next rate decision. The STOXX 600 index increased slightly, while British pay growth and unemployment rates showed mixed results. Key stock movements included a significant drop for Tecan Group and an upgrade for GTT.

European shares inched upwards on Tuesday as investors eagerly awaited key U.S. economic data later in the day, seeking further insights into the Federal Reserve's potential rate moves. However, gains were capped by disappointing corporate earnings.

The STOXX 600 index saw a modest increase of 0.3% to stand at 500.74 points as of 0712 GMT. This minor improvement follows a flat close during the previous session, with investors refraining from substantial bets ahead of the anticipated drop in U.S. producer prices.

In the UK, official figures revealed that British pay growth hit its lowest in nearly two years during Q2, a development that might reassure the Bank of England about easing inflation pressures, despite an unexpected drop in the unemployment rate. London's FTSE 100 mirrored the 0.3% rise.

Among significant stock movements, Tecan Group plummeted by 15.6% after announcing an expected mid-single-digit percentage decline in its 2024 sales. Shares of Fortnox fell 10% following Tommy Eklund's resignation as CEO of the Swedish software company. Meanwhile, French engineering firm GTT rose by 4% after Berenberg upgraded its rating to 'buy' from 'hold', citing a robust order backlog and favorable demand outlook.

(With inputs from agencies.)