European stocks rise, but mixed data limit gains

European stocks rose Thursday, July 13, as US inflation data boosted hopes that the US Federal Reserve is about to end the monetary tightening cycle after the Corona virus pandemic, although a mixed set of economic data limited the increase in gains.

The pan-European Stoxx 600 index rose 0.1% by 07:08 GMT.

In the previous session, the index posted its biggest percentage gain since early June, after a faster-than-expected slowdown in US consumer price inflation fueled expectations that the US Federal Reserve may end interest rate hikes after July.

Weak trade data from China weighed on risk appetite, while the UK economy on the other hand contracted less than expected in May.

Industrial shares, which are sensitive to news related to China, recorded the biggest losses on the index.

Barratt Developments fell 4% after Britain’s largest homebuilder indicated it would build far fewer homes this fiscal year, while Swatch rose 6.4% after the watchmaker reported record growth in the first half of the year.