By Pranav Kashyap
(Reuters) -Europe’s main stock index inched higher on Tuesday after presenting a flat note in the previous session, while investors awaited key U.S. data for more clues on the Federal Reserve’s next rate move, although dour corporate earnings limited gains.
The continent-wide STOXX 600 index was up 0.1% at 499.62 points, with utilities and financials were the top sector performers.
However, sentiment remained fragile as investors refrained from making large bets ahead of U.S. producer prices, set to drop at 8:30 a.m. ET (1230 GMT).
Economists polled by Reuters expect the month-on-month producer price inflation to tick up 0.2% in July, unchanged from a month ago, while moderating to 2.3% on a yearly basis.
This will be followed by the crucial consumer price index (CPI) reading in the United States on Wednesday.
Markets are teetering between a potential 25 basis-point cut and a more aggressive 50 bps reduction at the Fed’s September meeting.
“Investor sentiment is still slightly rattled by what happened last week .. they’re looking for confirmation and clarity about what’s going on regarding CPI,” said Teeuwe Mevissen, senior macro strategist at Rabobank.
Germany’s economic sentiment data at 0900 GMT will also be closely monitored to assess the health of the region’s economy.
Spanish benchmark IBEX 35 gained 0.3% as Spain’s European Union-harmonised 12-month inflation fell to 2.9% in July, from 3.6% in the period through June.
London’s FTSE 100 was flat after data showed British pay growth dropped to its lowest in nearly two years in the second quarter, likely reassuring the Bank of England that inflation pressures are easing, while the unemployment rate unexpectedly dropped.
Among notable movers, Tecan Group slumped 16.4% to log its worst day in two decades after the Swiss life science equipment maker expects its 2024 sales to decrease in mid-single-digit percentage range.
Fortnox dropped 12.4% after Tommy Eklund stepped down as CEO of the Swedish software group.
Flutter Entertainment fell 4.2% ahead of its second quarter results. It also dragged the travel sector to the bottom of the STOXX 600.
On the flip side, French engineering company GTT jumped 3.3% to the top the index after Berenberg upgraded its rating on the stock to “buy” from “hold”, citing higher-than-expected order backlog coupled with strong demand outlook.
(Reporting by Pranav Kashyap in Bengaluru; Editing by Sherry Jacob-Phillips and Varun H K)
