Europe Cautious Ahead of US Inflation Data as German Prices Rise
European stock markets remain cautious ahead of US inflation data for July, which could shape expectations about the Federal Reserve's next moves. Investors are also watching tensions in the Middle East and oil volatility, while semiconductor purchases continue to support some equity sectors.
The European market is divided on the Fed's decisions in September, with a stronger-than-expected price reading potentially leading to speculation about further rate hikes, and a more moderate reading leaving room for maintaining the current monetary stance.
On the European front, German inflation accelerated in July, with consumer prices rising 2.8% year-over-year, compared to 2.3% the previous month, driven mainly by energy and fuel price increases.
Milan's FTSE Mib index gained 0.25% at midday, led by Prysmian, which accelerated beyond 4%, while DiaSorin sank after UBS downgraded its rating from neutral to sell and cut its target price from €66 to €55.