Europe open: Shares rise on hopes of US inflation slowdown

European shares opened higher on Thursday following strong showings in the US and Asia as US CPI data showed signs of a slowdown in inflation.

The pan-European Stoxx 600 index rose 0.4% in early deals. Stocks finished higher on Wednesday with investors betting the inflation reading will lead to the Federal Reserve to raise rates less aggressively.

“After last night’s rally on Wall Street thanks to a better-than-expected US inflation report, European markets have followed suit trading upwards thanks to global risk-on sentiment. Basic resources are underperforming while technology and financials are leading the charge,” said Interactive Investor analyst Victoria Scholar.

In equity news, insurer Aegon jumped 7.5%, to top the Stoxx, as it raised its forecasts for full-year operating capital generation and 2021-2023 free cash flow.

Ladbrokes owner Entain gained as the gambling firm announced a new drive to expand into Central & Eastern Europe (CEE) on Thursday and the acquisition of a Croatian sportsbook operator, as it posted a rise in first-half net gaming revenue.

Bottling group Coca-Cola HBC rose as it said revenues had grown in the six months ended 1 July but contracting margins had led to a drop in interim profits.

Zurich Insurance Group also rose as it reported a better-than-expected rise in operating profit in the first half.

Reporting by Frank Prenesti at Sharecast.com