Europe midday: Shares trim gains ahead of US CPI, Fed rate data

European shares trimmed gains on Monday, with investors eyeing a key meeting of US Federal Reserve policymakers on and inflation numbers.

The pan-European Stoxx 600 index was up 0.25% in early trade, althought there was little corporate or economic news to drive sentiment. All major regional bourses were higher.

‘’To pause or not to pause – is the big question investors are mulling about the intentions of Fed policymakers ahead of the crunch meeting this week," said Hargreaves Lansdown analyst Susannah Streeter.

"The latest inflation data out on Tuesday could sling another arrow of uncertainty into investors’ minds if headline inflation doesn’t head down quite as fast as expected, and core inflation, stripping out energy and food prices stays elevated."

"But with signs the mighty services industry is slowing, with the ISM Services PMI index showing growth tailing off, it has added to expectations that the Fed will take a pause this week and assess the economic currents."

In equity news, shares in Georg Fischer fell as the industrial supplier said it has made an all-share offer to buy Finnish peer Uponor for €2.1bn as it looks to boost its water- and flow-solutions business.

Ocado surged after BNP Paribas Exane upgraded the online grocer to 'neutral', with the broker saying that the company's outlook and market sentiment now appear “much better aligned”.

Reporting by Frank Prenesti for Sharecast.com