European stocks rise on positive earnings updates; eyes on US inflation data

European stocks continued to rise on Thursday, buoyed by a series of upbeat earnings updates. But market attention shifted to upcoming U.S. inflation data, which could provide clues as to when the Federal Reserve will cut interest rates for the first time.

The pan-European STOXX 600 index was up 0.5% as of 0817 GMT, led by gains in the construction and materials sectors. The oil and gas sector was down slightly. London’s FTSE 100 was also up 0.2%, with data suggesting the U.K. economy grew faster than expected in May. That complicates the chances of the Bank of England cutting interest rates next month.

French shares outpaced European ones, rising 0.6%. Media group Vivendi led the pack, rising 3% after JP Morgan added the company’s shares to its “positive catalyst” list. Investors are closely watching U.S. consumer prices, due at 12:30 GMT. Inflation is expected to fall to 3.1% in June from 3.3% in May.

(Disclaimer: Based on information obtained from the agency.)