Europe open: Stocks at three-week high ahead of US CPI data

European equity markets rose to a three-week high on Thursday morning, with resources stocks providing a lift, though gains were limited ahead of some key economic data from the States later on.

By 0919 BST, the Europe Stoxx 600 Index was up 0.3% at 454.72 – it has not closed above this level since 20 September.

US producer prices rose 2.2% in the 12 months to September, data revealed on Wednesday, up from 2% in August and well ahead of the 1.6% consensus forecast. Eyes will now turn to the release of the consumer price index due out at 1330 BST, which is expected to show that the annual rate of inflation eased from 3.7% to 3.6%.

"All eyes are on US CPI figures today for clues into the outlook for inflation and the Fed’s next move," said Victoria Scholar, head of investment at Interactive Investor. "Minutes from the central bank’s latest meetings suggested that interest rates look set to remain high for ‘some time.’”

Meanwhile, Russ Mould, investment director at AJ Bell, said "the market is hanging on the Fed’s every word to see if it believes rate hikes are no longer necessary."

Closer to home, manufacturing production and industrial output growth data in the UK missed expectations on Thursday, however UK GDP rebounded, growing 0.2% in August – in line with expectations.

Oil prices were starting to bounce back after their recent falls, with Brent crude up 1% at $86.61 a barrel early on, helping to drive share prices in the oil and gas sector higher across Europe.

Shell, BP, TotalEnergies and Repsol were all performing well.

Mining stocks were also in favour, with Rio Tinto, Anglo American and Endeavour Mining rising in London as precious and industrial metal prices rose across the board.