European stocks rise
European stock markets finished higher on Tuesday, with the Stoxx 600 gaining 0.24%.
In London, the FTSE 100 was up by 0.22%, while France’s CAC 40 increased by nearly 0.8%. German stocks also showed a positive trend, contributing a 0.13% rise.
– Sawdah Bhaimaya
STOXX 600 climbs post US inflation report
The Stoxx 600 saw an uptick after U.S. core inflation data came in higher than anticipated, pushing the European index 0.2% up.
According to the Bureau of Labor Statistics, the consumer price index rose by 0.2% month-over-month and an annual rate of 2.7%, while the Dow Jones had forecasted an uptick of 0.2% and 2.8%.
Core CPI, which excludes the more volatile food and energy sectors, increased by 0.3% monthly and 3.1% over the year, surpassing forecasts.
– Sawdah Bhaimaya
Norway’s $2 trillion fund maintains Israeli investments
In response to inquiries about possibly divesting from Israeli companies, Torondo Grande, deputy CEO of Norges Bank Investment Management (NBIM), stated that the Norwegian sovereign wealth fund would continue its investments in Israel.
Grande noted that Israel remains a part of their portfolio benchmark, emphasizing the ongoing commitment to invest there.
The fund recently announced it would sell investments in Israeli companies not listed in its Equity Benchmark Index due to ongoing conflicts, while also reviewing its management and asset management contracts.
Grande acknowledged the increased scrutiny on Israeli holdings, stating, “What we’re doing now is really not downwards… but we have ethical guidelines too.”
– Chloe Taylor
Hanover Re shares dip amid wildfire losses
Hanover Re stocks fell by 2% in London as it faced significant losses from recent wildfires, marking one of the poorest performances on the STOXX 600 index.
In the second quarter, the German reinsurer reported a net income of 833.5 million euros, slightly below analysts’ expectations of 837.2 million euros.
Despite heavy losses amounting to €976.1 million in the first half from calamities like the California wildfires, CEO Clemens Johnscheffel expressed optimism about the company’s performance and resilience.
– Chloe Taylor, Emilia Hardy
UK sees unexpected job growth
Recent data reveals that UK employment rose by 238,000 over the three months leading to June, although job vacancies saw a decline for the 37th consecutive quarter.
– Matthew Ward Perkins
US tourists spend less in the UK, retailers report
New statistics show American tourists are spending less in the UK compared to previous years. The reduction in tax-free shopping implemented in 2021 has notably impacted their purchasing habits.
The International Retail Association advocates for reinstating VAT-free shopping for international visitors, suggesting it could provide a significant economic boost.
– Andreea Gheorghe
World’s largest sovereign wealth fund reports 5.7% return
The Norwegian sovereign wealth fund, which manages about $2 trillion, announced a return of 5.7% for the first half of the year, largely credited to strong financial stock performances.
Stock investments made up 70.6% of the fund’s holdings, yielding a return of 6.7%. Bonds generated a 3.3% return while real estate saw a 4% return.
Despite a recent dip due to substantial tech sector losses, CEO Nicolai Tangen highlighted the fund’s resilience. Notably, in response to ongoing conflicts, the fund is expediting the sale of non-benchmark Israeli investments.
– Chloe Taylor
Opening call for European markets
Welcome to the CNBC live blog following European financial news. Early futures data suggests a positive start for the European indices.
The CAC 40 was up by 0.3%, Germany’s DAX climbed 0.25%, and Italy’s FTSE MIB also saw a slight increase.
Globally, the focus this week is on tariff discussions and upcoming inflation data in the U.S., particularly regarding how it might influence Federal Reserve interest rate decisions later this month.
– Holly Eliatt
What to watch on Tuesday
While the European markets lack major revenue reports today, attention will be on fresh UK employment figures and Germany’s economic sentiment data due early in the morning.
Investors are particularly keen on the U.S. Consumer Price Index report, which may provide insights into potential rate adjustments by the Federal Reserve. Projections suggest a monthly increase of 0.2% and an annual rise of 2.8%, with core CPI expected to be up by 0.3% and 3.1% year-on-year.
– Holly Eliatt, Brian Evans
