Europe open: Shares up ahead of EZ CPI; Red Sea attacks in focus

European stock markets opened higher on Tuesday, following a positive session on Wall Street and ahead of final eurozone inflation data for November, while attacks on shipping in the Red Sea tempered sentiment.

The pan-European Stoxx 600 index was up 0.27% at 476.5 in early deals with all major bourses higher bar France’s CAC 40, which was down 0.06% at 7,565.

Eurozone CPI is expected to be confirmed at an annual rate of 2.4%, a fall of 0.5% month on month. The European Central Bank kept interest rates unchanged last week, boosting hopes that it might start cutting next year.

In Asia, the Bank of Japan kept interest rates at -0.1% and stuck to its yield curve policy, with the Japanese yen coming under pressure against the US dollar as a result.

Shares in oil majors Shell and BP fell as shipping through the Red Sea was suspended following recent attacks on vessels in the Suez and Red Sea region by Yemeni Houthi rebels. Investors fear the attacks could lead to higher oil prices as supply is constrained or vessels have to take longer and safer routes to deliver goods.

Shipping giant Maersk was also down on the news.

Reporting by Frank Prenesti for Sharecast.com