London skyline.
Vuk Valcic Sopa Photo | Light Rocket | Getty Images
LONDON — European stocks rose on Thursday as investors digested lower-than-expected inflation data from the United States and Britain, maintaining positive momentum for the week.
regional Stoke 600 As of 9:38 a.m. in London, the index was up 0.2%, led by gains in health care stocks, which were up 0.5%.
European stocks closed higher on Wednesday as investors assessed key inflation data from the U.S. and U.K. Data from the Office for National Statistics showed that UK inflation rose to 2.2% in July, slightly lower than expected but slightly above the Bank of England’s 2% target.
Later in the day, stocks rose after the U.S. consumer price index reflected annual inflation slowing to 2.9%, the lowest level since 2021.
The U.S. data, coupled with a weaker-than-expected rise in a key measure of wholesale inflation on Tuesday, reassured investors that a soft landing for the economy is back on the table.
Investors are now assessing whether the print signals the Fed will cut interest rates by 25 or 50 basis points in September. According to CME’s FedWatch tool, market pricing suggests a 58.5% chance of the former and a 41.5% chance of the latter.
About The Author
