FTSE 100 up 0.30%; DAX up 0.47%; CAC 40 down 0.02% (Il Sole 24 Ore Radiocor) - Milan, 15 May - European shares were moderately higher in cautious midday trade, with the Stoxx 600 index up 0.30%, hovering near record highs.

Investors remained on the sidelines as they awaited the release of key US consumer inflation data later today and looked for signs that inflation in the world's biggest economy has resumed its decline towards the Federal Reserve's 2% target rate.

Data released yesterday showed that US producer prices in April came in slightly higher than expected on the back of higher costs for services and goods, indicating inflation remained sticky in the second quarter.

Stubborn inflation has recently prompted the Fed to put back the timetable for rate cuts, leading traders to recalculate their expectations for the number of cuts this year.

Speaking yesterday at the annual general meeting of the Foreign Bankers' Association in Amsterdam, Fed chair Jerome Powell said that that inflation is falling more slowly than expected, which will likely keep the central bank on hold for an extended period. 'I do think it's really a question of keeping policy at the current rate for longer than had been thought,' Powell said.

The CME Group's FedWatch Tool is currently pricing in two rate cuts this year, the first in September.

Traders also continued to monitor fresh earnings reports from European companies including Allianz, Commerzbank, EON, RWE, Thyssenkrupp, TUI, Bilfinger, Burberry, Ubisoft, ABN Amro and Telecom Italia.

Data reased today showed that in the first quarter of 2024, seasonally adjusted GDP increased by 0.3% in both the euro area and the EU, compared with the previous quarter, according to a flash estimate published by Eurostat, the statistical office of the European Union. In the fourth quarter of 2023, GDP had declined by 0.1% in the euro area and had remained stable in the EU. Year on year, seasonally adjusted GDP increased by 0.4% both in the euro area and in the EU in the first quarter, after rising 0.1% in the euro area and 0.2% in the EU in the previous quarter.

In March 2024 compared with the previous month, seasonally adjusted industrial production increased by 0.6% in the eurozone and by 0.2% in the European Union, according to data from EU statistical office Eurostat.

At 1135 GMT the FTSE 100 was up 0.30% at 8,453 points, the the Frankfurt DAX was up 0.47% at 18,811 points. The Paris CAC 40 was down 0.02% at 8,224 points, while in Milan the FTSE MIB was up 0.23% at 35,233 points and in Madrid the IBEX 35 was up 0.45% at 11,289 points.

AAA-Ver

(RADIOCOR) 15-05-24 13:42:10 (0443) 5 NNNN