(Reuters) -European shares edged higher on Thursday, as investors cautiously awaited the European Central Bank’s monetary policy verdict and a key inflation report out of the United States later in the day.
The pan-European STOXX 600 edged up 0.1% to 553.03 points, as of 0711 GMT, with personal and household goods leading sectors higher with a 0.5% rise.
The sector got a boost from Kering’s 1.5% gain after the Gucci owner said it will not fully buy Italian fashion brand Valentino until at least 2028, pushing back the execution of an expensive deal that has been weighing on the heavily indebted group.
The main event for the day will be the European Central Bank’s interest rate decision expected at 1215 GMT.
Most economists are expecting no change to borrowing costs but investors will scrutinize President Christine Lagarde’s remarks on how a fraught trade and political outlook in the continent will influence prospects of further easing.
Among others, Covestro rose 6.3% after a Reuters report said Abu Dhabi state oil giant ADNOC is readying remedies to address an EU subsidy investigation into its 14.7 billion euro ($17.19 billion) bid for the company.
Later in the session, investors will shift their focus to U.S. consumer inflation data. Economists are anticipating prices to have picked up in August, but that is unlikely to derail a much-anticipated interest rate cut from the Federal Reserve next week.
($1 = 0.8553 euros)
(Reporting by Tristan Veyet in Gdansk, Johann M Cherian in Bengaluru; Editing by Mrigank Dhaniwala)
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