Europe open: Shares up despite Germany inflation data, eyes on US CPI
European shares were higher at the open on Wednesday despite higher inflation data in Germany, with investors eyeing US prices data later in the day.
The pan-European Stoxx index was up 0.6% in early deals after mixed performances on Wall Street and in Asia.
Economists are expecting US inflation in April to be lower than the 8.5% year-on-year figure reported in March. Data is expected to show the US consumer price index falling to 0.2% in April from 1.2% in March.
Investors have been spooked by suggestions that central banks will have to me more aggressive with rate hikes in order to stymie rampant inflation.
In Europe, German inflation in April rose to an annual 7.4%, its highest readout since 1981.
In equity news, shares in Swedish Match jumped 9.0% after Marlboro-maker Philip Morris International said it was making a recommended cash offer for the company of about 161.2 billion Swedish crowns ($16bn).
Shares in catering group Compass were also 9% higher as the company posted a jump in first-half operating profit and revenue, lifted its revenue guidance and announced the launch of a £500m share buyback as it hailed strong growth across all sectors.
French train maker Alstom rose after it reported better-than-expected annual operating profit.
Bayer fell after the Biden administration asked the US Supreme Court not to hear the German agriculture and pharmaceutical company's bid to dismiss claims by customers who contend that its Roundup weedkiller causes cancer.
Shares in German drug discovery and development company Evotec fell after the company posted lower adjusted first quarter core earnings.