Europe stocks rise 0.2% as soft US inflation eases Fed fears
What's new: Traders cut the odds of a July Fed rate hike to about 10% from 35% before the inflation report.
European shares closed higher Tuesday after cooler-than-expected US inflation data reduced expectations for a near-term Federal Reserve rate increase. The Stoxx 600 ended up 0.2% at 642.1 after earlier falling as much as 0.9%. Basic resources led gains, climbing 2.4% as metal prices rose on a weaker dollar. Oil and gas stocks added 1.3% as crude advanced after the US re-imposed a naval blockade on Iran, raising concerns about flows through the Strait of Hormuz. Travel and leisure fell 1.3%. BP gained 2.3% on expectations for stronger second-quarter results, while Ericsson dropped 12.6% after missing sales estimates and warning on higher component costs.