European stocks end higher on softer US inflation data

European stocks closed higher on Wednesday as investors digested mixed economic data from the U.K. and the U.S.

The Stoxx 600 index close 0.43 per cent higher as optimism persisted in the market. Travel and leisure stocks led the rally, ending 2.89 per cent higher, while mining shares underperformed, closing 0.97 per cent lower.

In the UK, inflation edged up to 2.2 per cent in July, slightly below forecasts but still above the Bank of England’s target. While services inflation moderated, the data suggests that the central bank may maintain a cautious approach to monetary policy.

Across the Atlantic, US inflation also came in softer than anticipated, with both consumer and producer price indexes showing slower increases. These reinforced expectations of a potential interest rate cut by the Federal Reserve in September.

Attribution: CNBC