Europe open: Stocks up on US CPI optimism

European shares were higher at the open as attention turned to US inflation data widely tipped to show price pressures easing, spurring hopes that the Federal Reserve will ease its monetary tightening policy.

The pan-regional Stoxx 600 index was up 0.31% with major regional bourses in the green and US futures indicating a positive start.

Headline US annual inflation is expected to come in at 3.1% in June, after May's 4%, while the core rate is forecast to have dropped for a third straight month to 5% from 5.3%.

Defence group Thales rose after its started talks to buy the French supplier of airborne avionics systems Cobham Aerospace Communications for $1.1bn.

AXA shares gained as the company was reportedly considering offloading its property reinsurance business to cut disaster risk.

Grafton shares were up as the building materials supplier held guidance as first-half revenues rose 3.2% despite the cost-of-living crisis hitting volumes.

Norway's DNB Bank fell despite reporting a bigger-than-expected rise in quarterly earnings, driven by a robust economy and higher interest rates.

Reporting by Frank Prenesti for Sharecast.com