Europe's STOXX 600 climbs as upbeat earnings buoy travel and leisure, financial stocks
The pan-European STOXX 600 closed 0.5% higher, with all the major regional bourses also ending in positive territory.
Data showed U.S. consumer prices rebounded as expected in July, but the trend remained consistent with subsiding inflation, a day after moderating producer price numbers reinforced hopes that the Federal Reserve will cut rates soon.
«The CPI report is a green light for the Fed to cut interest rates at their next decision on September 18,» said Bill Adams, chief economist for Comerica Bank.
Comerica forecasts the Fed to cut the federal funds target by a quarter of a percentage point at each of the next four decisions in September, November and December, and in January 2025.
Investors are hoping for the Fed to deliver a rate cut as early as September after fears of a U.S. recession choked global risk assets earlier this month.
The travel and leisure sub-index logged its biggest one-day gain of 3%, lifted by a 10.5% surge in Flutter after the world's largest online betting firm raised its full-year outlook.
News of the Irish betting giant entering talks to buy Playtech's Italian unit Snaitech sent shares of the UK gambling technology firm up 14%.
In the euro zone, data for the second quarter showed the euro zone's GDP rose by 0.3% quarter-on-quarter, while employment rose by 0.2% quarter-on-quarter.
Further, France's consumer prices rose 2.7% year-on-year in July, slightly up from the previous month's preliminary reading.
On the earnings front, Swiss bank UBS jumped 5.3% after posting a
