European Markets Edge Higher Amid Key Economic Data Wait
European shares slightly increased on Tuesday as investors awaited crucial euro zone data. The STOXX 600 index gained 0.2%, with technology stocks leading the rise. Oil and gas stocks lagged due to lower crude prices. Market focus was on upcoming consumer prices and Federal Reserve Chair Jerome Powell's comments at the Jackson Hole conference.
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European shares saw a modest rise on Tuesday, with investors holding back from major bets as they awaited critical euro zone data.
The pan-European STOXX 600 index rose by 0.2% following a flat opening, reaching a three-week high. Although most regional bourses were in positive territory, London's FTSE 100 dropped 0.5%.
German producer prices declined by 0.8% annually in July, matching expectations, while the German benchmark DAX rose by 0.2%. Swedish shares fell 0.3% after the central bank reduced its key interest rate to 3.5%.
Market attention was fixed on euro zone consumer prices data, expected to provide insights on the European Central Bank's rate trajectory. Technology stocks lifted the STOXX 600, especially ASML Holdings which jumped 2.5%.
The oil and gas sector declined 1.5% as global oil prices dropped amid easing geopolitical tensions and weak demand from China. European equities are in a consolidation phase as investors remain cautious ahead of significant economic reports expected throughout the week.
This week's focus will also be on Federal Reserve Chair Jerome Powell's address at the Jackson Hole conference. Fed officials have indicated a potential rate cut in September, and markets are keen to see if Powell aligns with these expectations.
Geoffrey Yu, a senior EMEA market strategist at BNY, stated, 'Expect a dovish tone from Powell, but perhaps not as dovish as some might hope; many critical policy rate questions may remain unanswered.'
BT's shares fell 5.2% following Sky's announcement that it will launch broadband services on CityFibre's network.
(With inputs from agencies.)