European shares inch higher ahead of key US data

(Reuters) – European shares edged higher on Tuesday as investors awaited key U.S. economic data later in the day for more clues on the Federal Reserve’s next rate move, although a handful of dour corporate earnings capped gains.

The index was up 0.3% at 500.74 points, as of 0712 GMT, after the continent-wide index closed on a flat note in the previous session.

Investors held back from making massive bets ahead of U.S. producer prices set to drop later in the day.

British pay growth dropped to its lowest in nearly two years in the second quarter, official figures showed, likely reassuring the Bank of England that inflation pressures are easing, while the unemployment rate unexpectedly dropped.

London’s also edged 0.3% higher.

Among notable stock moves, Tecan Group slumped 15.6% after the Swiss life science equipment maker expects its 2024 sales to decrease in mid-single-digit percentage range.

Shares of Fortnox dropped 10% after Tommy Eklund stepped down as CEO of the Swedish software group.

French engineering company GTT rose 4% after Berenberg upgraded its rating on the stock to “buy” from “hold”, citing higher-than-expected order backlog coupled with strong demand outlook.