Europe open: Shares up ahead of US CPI; MEast tensions in focus again.


European shares opened higher on Wednesday as investors awaited key inflation data from the US, while Israel's bombing of Qatar was also in focus.

Source: Sharecast

The pan-regional Stoxx 600 index was up 0.36% at 554 in early deals. France’s CAC 40 was up 0.6% amid continuing political turmoil over the government’s planned austerity budget.

“Sentiment could turn sour if today’s (US) inflation snapshot comes in higher than expected. The headline rate is expected to come in at 2.9% but the real number to watch will be core CPI, which strips out volatile food and fuel prices,” said Hargreaves Lansdown analyst Susannah Streeter.

“Its broadly expected to be stable, coming in at 3.1% on an annual basis, but if it ticks higher month to month, it could put the cat among the pigeons.”

Investors were also assessing reports that US President Donald Trump had asked the European Union to hit China and India with tariffs of up to 100% over their purchases of Russian oil, as he tries to pressure Moscow to end its war on Ukraine.

Oil prices rose as Israel once again attacked an external sovereign state, this time bombing targets in Qatar, claiming it was targeting leadership of the militant Hamas group.

In equity news, shares in Inditex rose after the fashion retailer released interim results.

Primark owner Associated British Foods slumped after a trading update.

Reporting by Frank Prenesti for Sharecast.com

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