Technology and travel sectors lift European stocks amid focus on inflation data

European stocks experienced a rise on Tuesday, driven by gains in the technology, travel, and entertainment sectors. Investors were particularly focused on the upcoming inflation data in the eurozone to gauge potential signals for next year’s interest rate cuts.

The European STOXX 600 index saw a 0.3 percent increase by 0818 GMT, rebounding from Monday’s decline. Market participants are keenly anticipating the final inflation figures for November in the eurozone, which are scheduled for release on Tuesday. Additionally, attention is directed towards the upcoming data on personal consumption spending in the United States, slated for release later in the week.

The recent leaning of the Federal Reserve toward monetary easing has bolstered expectations of an impending interest rate cut. This shift in sentiment has contributed to robust gains in global stocks.

UBS shares rose by 1.6 percent following the acquisition of a 1.3 percent stake in the bank by Cevyan Capital Investment Company. Covestro shares also advanced by 2.4 percent after reports suggested that Abu Dhabi National Oil Company (ADNOC) might increase its offer to acquire the German chemical company.

Conversely, Norwegian energy group Equinor’s shares experienced a 1.6 percent decline after RBC lowered its rating on the stock. The market continues to respond to various factors, and caution is advised as geopolitical and economic uncertainties persist.

Note: The information provided is based on the available data up to my last training cut-off in January 2022, and subsequent developments may have occurred.