Europe shares end higher after upbeat US inflation data

FTSE up 0.30%; DAX up 0.54%; CAC 40 down 0.03% (Il Sole 24 Ore Radiocor) - London, 13 Aug - European shares closed mostly higher as investors welcomed positive inflation data from the US.

US producer prices rose just 0.1% in July from the previous month, compared to expectations for a 0.2% rise; while annual wholesale inflation rose 2.2% compared to the previous month's 2.7% and a consensus of 2.3%.

Investors will now turn to US consumer price data due out tomorrow and retail sales later in the week which on this occasion take on more importance given growing concerns over economic growth.

The Federal Reserve is hoping the US economy will slow enough to be able to tame high inflation while not slowing too rapidly economic growth and running the risk of triggering a possible recession.

On the data font, in August the economic sentiment index in Germany fell to 19.2 points from 41.8 in July, according to the latest survey released by think tank ZEW.

The assessment of the economic situation also worsened, falling 8.4 points to -77.3 points.

Oil prices snapped a five-day winning streak on demand concerns after OPEC yesterday cut its forecast for demand growth in 2024 due to softer expectations in China.

The London FTSE 100 closed up 0.30% at 8,235.23 points, the Frankfurt DAX added 0.54% at 17,807.49 points, the Paris CAC 40 shed 0.03% at 7,275.87 points, while in Milan the FTSE MIB rose 0.25% at 32,006.45 points, and in Madrid the IBEX 35 closed 0.75% higher at 10,726.02 points.

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(RADIOCOR) 13-08-24 18:03:31 (0461) 5 NNNN