European Stocks Edge Up Amid Awaited U.S. Data, Fed Rate Speculations

Europe's main stock index inched higher after a flat previous session as investors awaited key U.S. data for clues on the Federal Reserve's next rate move. Dour corporate earnings limited gains, while sentiment remained cautious with upcoming producer prices and consumer price index readings in focus.

Europe's main stock index inched higher on Tuesday after presenting a flat note in the previous session. Investors are eagerly awaiting key U.S. data for more clarity on the Federal Reserve's next rate move, although disappointing corporate earnings limited overall gains.

The continent-wide STOXX 600 index saw a slight rise of 0.1% to 499.62 points. Utilities and financials were the top sector performers. Caution prevailed as investors refrained from making large bets ahead of U.S. producer prices, set to be released at 8:30 a.m. ET (1230 GMT).

Market attention is on the potential for a 25 basis-point rate cut or even a more aggressive 50 basis points reduction at the Fed's September meeting. Investor sentiment is still somewhat shaky, especially since last week, and they are looking for confirmation and clarity regarding CPI. Germany's economic sentiment data at 0900 GMT will also be closely watched.

(With inputs from agencies.)