European shares near one-month high; US inflation data awaited

European stocks gained on Tuesday, led by basic resources as Glencore touched a near two-week high, while investors geared up for a key U.S. inflation report for more clarity on the Federal Reserve’s monetary policy outlook.

The pan-European STOXX 600 added 0.3% by 0930 GMT to touch a near one-month intraday high following a rally in the previous session.

Along with the U.S. consumer inflation data, which is due at 1330 GMT (8:30 a.m. ET), investors will also keep an eye out for preliminary third-quarter gross domestic product data from the euro zone at 1000 GMT.

“Core inflation’s a bit higher, but it’s okay. Although there’s the danger that energy prices could spike among others, things seem to be moving in the right direction in the U.S.,” said Michael Field, Europe market strategist at Morningstar.

“The euro zone economy is basically going nowhere at the moment, and we’re just bidding our time until the ECB starts loosening up rates and then perhaps we can hope that we’ll start hitting low single-digit GDP growth.”

Meanwhile, the European Central Bank (ECB) is seen holding rates steady well into next year, with a majority of economists polled by Reuters sticking to forecasts that the first cut will have to wait until at least July.

On the contrary, Morgan Stanley (NYSE:MS) economists expect the ECB to deliver its first cut of 25 basis points in June.

The basic resources sector index jumped 1.1% as Glencore gained 3.1% (L:GLEN) after agreeing to buy a 77% stake in the steelmaking coal business of Canadian miner Teck Resources for $6.93 billion in cash.

The stock was also poised for its best single-day gain in a month.

German online takeaway food company Delivery Hero jumped 4.3% after slightly raising its full-year forecast.

Informa soared 5.7% as the British specialist data and events group increased its full-year revenue and profit expectations.

RWE (LON:0HA0) gained 2.2% after Germany’s top utility posted an 82% surge in core profit for the first nine months.

Meanwhile, Rolls-Royce (LON:RR) slipped 0.5% after Emirates Airline President Tim Clark ruled out an immediate deal to buy Airbus A350 jets, blaming a dispute with the engine-maker.

On the data front, third-quarter British wages grew slightly less fast but remained close to record pace, doing little to ease the Bank of England’s concerns about inflation pressures.

The FTSE 100 was down 0.1%, underperforming most of its regional peers.