FTSE 100 up 0.47%; DAX up 0.46%; CAC 40 up 0.65% (Il Sole 24 Ore Radiocor) - Milan, 14 Aug - European shares opened moderately higher, extending a recent rebound amid strong global markets. The Stoxx 600 index was up 0.44% in early trade.

Investors digested data showing that UK inflation rose to 2.2% in July, coming in slightly below expectations but above the Bank of England's 2% target. Economists polled by Reuters expect the headline rate to tick higher to 2.3%, up from 2% over the past two months.

The figures come after the Bank of England earlier this month slashed interest rates for the first time in over four years, taking the key bank rate to 5%.

Traders also monitored earnings reports from European companies including UBS, RWE, Thyssenkrupp, TUI, Carlsberg, Aviva and Vestas Wind.

Traders now awaited US consumer price index data due later today for more cues on the Federal Reserve's interest rate path. The reading is expected to show inflation cooled slightly in July.

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.

US stocks rallied overnight, hovering near last month's record highs, after data showed yesterday that producer prices rose less than expected for July, increasing by 0.1%.

Growing hopes that concerns over a US recession were overblown recently helped support global sentiment, after better-than-expected jobless claims data released last week dissipated some concerns about the health of the world's biggest economy.

In European stock market dealings most sectors were higher, with auto shares among the biggest advancers while miners slid.

At 0730 GMT the London FTSE 100 was up 0.47% at 8,273 points, the Frankfurt DAX was up 0.46% at 17,888 points, the Paris CAC 40 up 0.65% at 7,323 points, while in Milan the FTSE MIB was up 0.77% at 32,252 points, and in Madrid the IBEX 35 was up 0.20% at 10,45 points.

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(RADIOCOR) 14-08-24 09:50:32 (0211) 5 NNNN