European shares closed higher on Tuesday, boosted by gains in the energy sector, as investors digested a raft of economic data that painted a mixed picture of the region’s economic health.
The pan-European STOXX 600 index closed up 0.3% at 513.08 points, a level not seen in three weeks, as investors speculated on implications of rising inflation and imminent interest rate decisions.
More recent data showed an acceleration in euro zone inflation in December — a development that, while expected, added a layer of intrigue to the economic narrative.
While consensus remains that the European Central Bank is likely to press ahead with interest rate cuts in January, the interest-sensitive real estate sector fell 0.6%. The construction and materials sector lost 0.4%.
The energy sector gained 0.8%, with Norwegian oil tanker group Frontline jumping 7.4%.
As the European Central Bank’s policy meeting on January 30 approaches, the week’s inflation data becomes a focal point for market watchers.
In LONDON, the Financial Times index fell 0.05%, to 8,245.28 points.
In FRANKFURT, the DAX index rose 0.62%, to 20,340.57 points.
In PARIS, the CAC-40 index gained 0.59%, at 7,489.35 points.
In MILAN, the Ftse/Mib index increased by 0.45%, to 34,938.90 points.
In MADRID, the Ibex-35 index registered an increase of 0.03%, at 11,811.90 points.
In LISBON, the PSI20 index depreciated 0.53%, to 6,401.09 points.
