Europe open: Shares up ahead of US, UK inflation readings

European shares were higher at the open on Monday ahead of another busy week of earnings and economic data.

The pan-regional Stoxx 600 index was up 0.39% in early deals to 486.72 with all major bourses higher. With Asian markets closed for the Lunar New Year break, there was little to drive sentiment. Investors will have their eyes on US and UK inflation data as well as a speech from Bank of England governor Andrew Bailey for any clues on when interest rates may be cut this year.

“He’s expected to again stress the need to take time to scrutinise the data before making any rash moves on rate cuts. UK labour market data due out on Tuesday will be closely watched given that inflation busting pay growth is still a nagging worry for policymakers, who are concerned that it risks igniting a fire under prices again,” said Hargreaves Lansdown analyst Susannah Streeter.

In equity news, Just Eat made strong gains as Deutsche Bank raised its target price on the stock.

Reporting by Frank Prenesti for Sharecast.com