European stocks up ahead of Federal Reserve clues

European shares inched up on Tuesday as investors looked to key US economic data later in the day for insights into the Federal Reserve’s next rate decision; however, gains were limited by a few disappointing corporate earnings reports.

The STOXX 600 index was up 0.3 per cent at 500.74 points by 0712 GMT, following a flat close in the previous session.

The cautious optimism came as investors held off on major bets ahead of the release of US producer prices.

In the UK, data showed British pay growth fell to its lowest in nearly two years in the second quarter, likely easing inflation concerns for the Bank of England, while the unemployment rate unexpectedly dropped. London’s FTSE 100 also rose by 0.3 per cent.

Notable stock movements included a 15.6 per cent drop in Tecan Group’s shares after the Swiss life sciences company forecasted a decline in 2024 sales.

Fortnox saw its shares fall 10 per cent following the resignation of CEO Tommy Eklund. Conversely, French engineering firm GTT’s stock rose 4 per cent after Berenberg upgraded its rating to “buy,” citing a stronger-than-expected order backlog and positive demand outlook.

Attribution: Reuters

Subediting: M. S. Salama