European shares edged towards record levels on Tuesday as investors eyed US inflation later in the day, while strong China export data boosted sentiment.
The pan-European STOXX 600 was up 0.14 with most markets slightly higher. The UK’s FTSE 100 was down as February GDP figures missed estimates, despite the economy returning to growth amid Covid-19 restrictions.
GDP grew 0.4% following a 2.2% decline in January, and versus expectations of 0.6% growth. January’s figure was revised up from a previous estimate of a 2.9% drop, according to figures released by the Office for National Statistics.
Industrial and manufacturing production both exceeded expectations, while construction output also outstripped forecasts, the ONS figures showed.
In China, data showed the country’s exports grew at a robust pace in March and import growth surged to its highest in four years.
Across the pond, analysts are expecting the standard US inflation figure to rise from 0.4% to 0.5% month-on-month, with the core reading up from 0.1% to 0.2%.
“Anything higher than those estimates will likely set alarm bells ringing; anything lower will act as reassurance about the pace of building inflationary pressures,” said Spreadex analyst Connor Campbell.
“Since the entire market has been caught up in the inflation/interest rates/bond yield fears that have intermittently taken hold this year, Tuesday’s inflation figures are almost as relevant for Europe as they are for the US. That explains why the European indices didn’t do much after the bell.”
In equity news, shares in Swedish IT solutions provider Dustin jumped 1% after the company said it would buy Benelux hardware and software seller Centralpoint, for 425m.
