European Shares Range-bound In Cautious Trade

European stocks were moving in a narrow range on Tuesday as investors digested a barrage of earnings reports and looked forward to the Fed and BoE meetings.

Earlier in the day, the Bank of Japan kept its monetary policy steady, as widely expected, but announced policy tweaks to make its policy framework more flexible for the long-term yield target.

In economic releases, the euro area economy grew at a slower pace in the second quarter, preliminary flash estimate from Eurostat showed.

GDP grew 0.3 percent from the first quarter, when the economy expanded 0.4 percent. A similar slower growth was last seen in the second quarter of 2016.

Euro area inflation accelerated for a third straight month in July to its highest level since late 2012, preliminary data showed.

The harmonized index of consumer prices rose 2.1 percent year-on-year in July, after climbing 2 percent in June. Economists had expected the rate to remain unchanged.

Germany’s retail sales recovered in June after falling a month ago, while France’s consumer price inflation accelerated at a faster-than-expected pace in July, separate reports showed.

The German jobless rate held steady at 5.2 percent in July, in line with expectations, which was the lowest since German reunification.

The pan-European Stoxx Europe 600 index was marginally higher at 391.15 in late opening deals after declining 0.3 percent on Monday.

The German DAX and France’s CAC 40 index were little changed while the U.K.’s FTSE 100 was rising 0.4 percent.

Swiss banking giant Credit Suisse Group rose 2 percent after its Q2 profit more than doubled.

Lufthansa jumped 8 percent. The German airline posted weak second-quarter earnings but said cost cuts and higher fares will help it reach full-year targets.

French media conglomerate Vivendi added 5 percent. The company said it is exploring to sell up to 50 percent of Universal Music Group’s share capital.

Standard Chartered tumbled 2.8 percent despite the bank reporting a 34 percent rise in its first-half pretax profit.

Vedanta soared 5 percent in London as Chairman Anil Agarwal’s family trust offered about $1 billion in cash to take the company private.

Oilfield services provider Petrofac rallied 3.4 percent after it agreed to sell 49 percent of its operations in Mexico to Perenco International.

BP Plc gained 0.7 percent, Taylor Wimpey rose 1.3 percent, Fresnillo jumped 2.5 percent, Greggs soared 7 percent and Provident Financial advanced 13 percent after unveiling their financial results.

by RTTNews Staff Writer

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