FTSE up 0.56%; DAX up 0.50%; CAC 40 up 0.79% (Il Sole 24 Ore Radiocor) - London, 14 Aug - European shares closed higher after data showed that inflation in the US continued to ease largely in line with expectations, giving the Federal Reserve space to cut rates in September.

US consumer prices rose 2.9% in July compared to the same month last year, above a consensus for 3.0%. From last month, prices rose 0.2% to match expectations while core CPI prices, stripping out volatile energy and food, also met expectations.

The Fed 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.

Data showed yesterday that producer prices rose less than expected for July, increasing by 0.1%.

Investors also assessed data showing that in the second quarter of 2024, seasonally adjusted GDP increased by 0.3% in both the euro area and the EU, compared with the previous quarter. In the first quarter of 2024, GDP had also grown by 0.3% in both zones.

Also, data from EU statistical office Eurostat showed that in June 2024 compared with the previous month, seasonally adjusted industrial production in the eurozone decreased by 0.1% while it was unchanged in the European Union.

Compared with the year earlier, industrial production in June 2024 decreased by 3.9% in the euro area and by 3.2% in the EU.

The London FTSE 100 closed up 0.56% at 8,281.0 points, the Frankfurt DAX added 0.50% at 17,894.84 points, the Paris CAC 40 gained 0.79% at 7,333.36 points, while in Milan the FTSE MIB rose 1.01% at 32,328.03 points, and in Madrid the IBEX 35 closed 0.21% higher at 10,746.78 points.

AAA-Zap

(RADIOCOR) 14-08-24 18:05:15 (0451) 5 NNNN