European shares up on Tuesday

European shares edged up on Tuesday as investors held back from major trades ahead of significant eurozone economic data. The pan-European STOXX 600 index rose 0.2 per cent after opening flat, reaching a three-week high in the previous session. Most regional indices saw gains, except for London’s FTSE 100, which dropped 0.5 per cent.

German producer prices fell by 0.8 per cent year-on-year in July, matching expectations, with the DAX index climbing 0.2 per cent. In Sweden, shares declined by 0.3 per cent following a quarter-point reduction in the key interest rate by the central bank to 3.5 per cent.

Markets were focused on the eurozone’s consumer price data for July, recording 2.6 per cent. Technology stocks drove the STOXX 600 higher with a 1.2 per cent increase, spurred by a 2.5 per cent rise in ASML Holdings.

Conversely, the oil and gas sector lagged, falling 1.5 per cent due to a decline in global oil prices driven by reduced geopolitical tensions and weak demand from China. European equities are consolidating as investors await further economic indicators throughout the week.

Attention will shift to Federal Reserve Chair Jerome Powell’s speech at the Jackson Hole conference on Friday, with markets anticipating a dovish tone and potential signals for a September rate cut.

In company news, BT shares fell 5.2 per cent after rival media company Sky announced plans to launch its broadband services using CityFibre’s network.