Europe open: Shares rally ahead of US CPI data

European shares opened higher as investors awaited the latest inflation data from the US.

The pan-European Stoxx 600 index was up 0.36% to 503.28 in early deals with all major regional bourses higher.

“All eyes will be turning to the US today ahead of key inflation data. US markets have been lacking a little mojo ahead of CPI data out later today. Friday’s weakness bled into Monday’s session as investors look to be taking some profits from high-flying tech names," said Hargreaves Lansdown analyst Matt Britzman.

Investors will eye the CPI number for any clues on how it will affect the Federal Reserve’s timetable for planned interest rate cuts.

In other economic news, UK regular wages were up 6.1% in the three months to January 2024, while the unemployment rate edged up to 3.9% in the three months to January from 3.8%, versus expectations for it be unchanged.

The data also showed that the number of vacancies fell again, from 928,000 in the three months to January to a 32-month low of 908,000 in the three months to February.

In equity news, shares in Porsche fell as the German luxury carmaker said it expected lower profitability this year as it focused on launching four new models.

UK housebuilder Persimmon fell as it warned of tough trading conditions and posted a 52% slump in profits.

German chemicals maker Wacker Chemie rose more than 8% despite warning it expected a slight dip in sales for 2024.

Reporting by Frank Prenesti for Sharecast.com