FTSE up 0.36%; DAX up 1.15%; CAC 40 up 1.27% (Il Sole 24 Ore Radiocor) - London, 12 Jul - European shares closed higher as investors assessed the latest inflation data from the US.

The US producer price index came in slightly higher than expected but was not high enough to cast doubts over the fact that US inflation is slowly easing towards the Federal Reserve's 2% target. Yesterday, the consumer price reading - the Fed's favourite inflation gauge - came in cooler than expected.

According to the CME FedWatch Tool, the market is now pricing in a 91% chance the Fed cuts rates in September compared to a 75% chance just two days ago.

Caution prevailed in the region this week amid prospects of a hung parliament in France after a surprise win last Sunday for the country's leftwing coalition, the New Popular Front (Nouveau Front Populaire). The bloc won the second round of the general election, thwarting an expected surge of the far-right, but failed to secure an absolute majority.

The French election results came after a general election in the UK last week that saw the opposition Labour Party win a landslide victory as expected, ending 14 years in power for the Conservative Party.

The London FTSE 100 closed up 0.36% at 8,252.91 points, the Frankfurt DAX added 1.15% at 18,752.93 points, the Paris CAC 40 gained 1.27% at 7,724.32 points, while in Milan the FTSE MIB rose 0.77% at 34,580.52 points, and in Madrid the IBEX 35 closed 0.84% higher at 11,264.11 points.

AAA-Zap

(RADIOCOR) 12-07-24 18:01:39 (0498) 5 NNNN