European Stocks Gain Before US Inflation as Luxury Goods Rise
European stocks rose before key US inflation data as luxury goods names outperformed after Washington extended a trade truce with Beijing.
The Stoxx Europe 600 Index was 0.4% higher by 8:09 a.m. in London. China-exposed luxury stocks including Hermes International SCA, Burberry Group Plc and Kering SA advanced after President Donald Trump paused sky-high tariffs on Chinese goods for another 90 days into early November.
A UBS Group AG basket of European defense-related stocks edged higher as Trump downplayed expectations for his meeting with Russian leader Vladimir Putin later this week. The basic resources and consumer product sectors outperformed, while technology stocks were the biggest laggards.
European stocks have drifted in a range since mid-May on worries about the global economy and the impact of tariffs. The benchmark Stoxx 600 is more than 2% below its March record high.
The focus Tuesday is on the US consumer price index print, with economists expecting a slight pickup in underlying inflation in July. Swaps traders currently see an 85% chance of a Federal Reserve rate cut in September, and a hotter-than-expected inflation report could trim those bets.
Source : Bloomberg
