Europe close: Stocks edge higher ahead key inflation readings later in the week

European shares rose slightly despite the persistent inflationary worries but on a light day in terms of fresh economic data.

"For a second day markets are enjoying a break from heavyweight data on the economic and corporate fronts," said IG chief market analyst, Chris Beauchamp.

"[...] US CPI looms over the week, bringing with it the potential to undo any gains made before the release. As a result, no one seems too keen to buy the dip this time around, lest they find the lower liquidity levels result in a sudden lurch lower that gets the buyers chased out of their positions."

A final reading on harmonised German CPI for the month of December was scheduled for release on Friday.

The pan-European Stoxx 600 index was up by just 0.01% at 465.34, albeit with all of the main regional bourses higher alongside, even if they had all also come off their best levels of the session.

Germany's Dax edged up by 0.24% to 15,242.38, while Spain's Ibex 35 climbed 1.36% to 8,674.60.

Eur/Usd was 0.21% lower to 1.1418 but the yield on the benchmark 10-year Italian government bond was again to be seen moving higher, by three basis points to 1.85%.

In equity news, BP shares were 2% lower as the oil and gas major recorded massive annual profits on the back of soaring commodity prices.

Holiday company TUI shares were down 1.7% despite an upbeat update that said summer travel bookings were hitting pre-COVID levels.

French care home company Orpea jumped 9% as investors picked up shares on the cheap after persistent sell-offs following allegations of malpractice in care homes.

Housebuilder Bellway was also in the black as it reported a solid first-half trading performance and strong underlying demand.

Ocado shares plunged 13% after the British online supermarket disappointed in its earnings report before the bell, with core earnings weighed down by tech investment.

EdF was down 1% after the nuclear electricity giant lowered its forecast for nuclear output in 2022 from 300-300 terawatt hours to 295-315.