FTSE 100 up 0.08%; DAX up 0.24%; CAC 40 up 0.20% (Il Sole 24 Ore Radiocor) - Milan, 03 Sep - European shares opened flat to slightly higher in cautious trade after yesterday's moderate gains.

Investors remained on the sidelines as they looked for fresh direction, pondering the outlook for interest rates.

The markets have priced for the Federal Reserve to begin interest rate cuts this month, with the US central bank seen slashing rates by 25 or 50 basis points at its next meeting on September 17-18.

Investors however braced for a string of key US economic data that could influence the Fed's decision.

The US ISM manufacturing survey is due later in the day and the closely watched US jobs report is due on Friday.

Back in the region, data showed yesterday that eurozone factories remained stuck in a rut last month, with the eurozone's purchasing managers' index for the manufacturing sector standing in August at 45.8, unchanged compared to July, according to final data released by S&P Global and Hamburg Commercial Bank.

Data showed on Friday that eurozone inflation dropped to a three-year low of 2.2% in August, according to statistics agency Eurostat, in line with forecasts.

The reading boosted expectations for a further rate cut in September from the European Central Bank.

At 0728 GMT the London FTSE 100 was was up 0.08% at 8,370 points, the Frankfurt DAX was up 0.24% at 18,970 points, the Paris CAC 40 up 0.20% at 7,662 points, while in Milan the FTSE MIB was up 0.03% at 34,330 points, and in Madrid the IBEX 35 was up 0.04% at 11,399 points.

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(RADIOCOR) 03-09-24 09:51:31 (0190) 5 NNNN