Europe open: Stoxx gains as softer German CPI helps sentiment

(Sharecast News) - European shares opened higher on Wednesday led by tech stocks, softer-than-expected German inflation data and lower oil prices, which eased concerns about inflation and interest rates.

The pan-regional Stoxx 600 index was up 0.66% to 662 at 0816 GMT with all major bourses higher. German CPI provided an early boost, with October inflation slowing to 2.8% year-on-year from 3.3% in September, below economists' forecasts of around 3.0%-3.1%.

The weaker-than-expected reading reinforced hopes that euro zone inflation pressures are easing, supporting expectations for a less restrictive interest-rate outlook.

Brent crude made small gains to sit at around $92 a barrel while West Texas Intermediate was $86.35.

Investors largely shrugged off a weak Wall Street overnight on the back of a hotter-than-expected US inflation reading and fresh comments from Federal Reserve governor Christopher Waller, who signalled that further monetary tightening remains on the table.

The Bureau of Labor Statistics' closely watched consumer price index rose less sharply in October, offering some relief after September's reading but still coming in stronger-than-expected as higher food and energy costs continued to put pressure on households.

The BLS' headline consumer price index increased 0.4% month-on-month in October, slowing from September's 0.6% rise, while core CPI, which strips out volatile food and energy costs, rose 0.3%, matching the pace seen in both August and September.

Economists expected to see headline inflation rise 0.3% month-on-month last month, slowing from September's 0.6% increase. Core inflation was forecast to increase 0.2%, compared with 0.3% in the prior month.

The equity leaders board was dominated by tech heavyweights, with ATS, Soitec, Infineon, ASM International and BE Semiconductor all making strong gains.

Reporting by Frank Prenesti for Sharecast.com