Source: Sharecast
The pan-regional Stoxx 600 index finished just 0.02% higher at 656.64.
US inflation ticked slightly higher in July, according to the Federal Reserve's preferred gauge, with both headline and core readings showing modest monthly increases.
The Bureau of Economic Analysis' personal consumption expenditures price (PCE) index rose 0.2% on the month and 3.7% year‑on‑year in July, both a touch above consensus, while core PCE, which strips out volatile food and energy costs, also increased 0.2% on the month and 3.3% annually, matching forecasts.
July's report showed personal income up 0.4% and spending rising 0.2%, both stronger than expected.
Goods prices fell 0.1%, driven by a 2.7% drop in gasoline and other energy goods and a 0.9% decline in household furnishings and durable equipment. Services prices, on the other hand, climbed 0.3%, led by a 1.2% rise in financial services and insurance and a 0.3% increase in housing.
July's reading comes as policymakers weigh their next move, with inflation still running above the central bank's 2% target despite softer monthly prints over the summer.
“US inflation becoming sticky like a fly trap helped check the momentum of US stocks at the opening bell on Wall Street,” said AJ Bell head of markets Dan Coatsworth.
“The core PCE number, historically closely watched by the Federal Reserve and investors thanks to its flexibility and the broad picture it offers of consumer spending, was in line with expectations. However, the data still carried the implication that inflationary pressures are becoming more entrenched as the impacts of the Iran war feed through to the world’s largest economy."
Brent crude fell for the third straight day as Iran and Oman resumed talks on a safe passage through the Strait of Hormuz, with the benchmark oil price down 0.32% to $8830 a barrel, having been 2.45% lower at $86.45 earlier in the session.
On the equities front all eye will be on second-quarter results from artificial intelligence darling Nvidia amid broader questions in the sector about stock overvaluations and the frenzied rush to build energy and water hungry data centres.
“The S&P 500 was still just about in positive territory as investors await earnings from Nvidia, which will give a read on the sustainability of the AI story – a key area of debate for markets in 2026. Nvidia beating expectations is usually treated with a shrug at best by investors these days, so the business will have to go further if it is to provide reassurance that the AI trade still has legs," Coatsworth said.
There was little to report on European stock markets. Ambu shares tanked by 16% after Nordea marked the shares down to a 'hold' from 'buy'.
Reporting by Frank Prenesti for Sharecast.com