Europe midday: Markets in cautious mood ahead of US data

(Sharecast News) - European shares opened cautiously higher on Tuesday after a positive session as investors continued to eye a raft of US data for any hints on interest rate moves next month. The pan-regional Stoxx 600 index was up 0.21%. Traders will be looking at retail sales, producer prices and consumer confidence numbers from the US later in the day.

Odds of a rate cut by the Federal Reserve in December have lengthened amid fears of a valuation bubble in artificial intelligence stocks and a lack of clarity around official job market data after the record Federal government shutdown that only ended last week.

"Today's attention will turn to key US economic data releases before traders start to wind down ahead of Thursday's Thanksgiving pause," said Hargreaves Lansdown analyst Derren Nathan.

"Markets will be looking for further reassurance that the soft-landing narrative isn't gravitating in the direction of stagflation. But the public numbers coming out today are more backward looking than usual, delayed by the earlier US government shutdown."

In equity news, shares in Kingfisher jumped after the DIY chain operator lifted profit forecasts.

UK bank shares jumped after reports that they had averted a tax raid on their massive profits in the government's Budget, which is scheduled for Wednesday. Barclays, Lloyds and NatWest were all higher.

Reporting by Frank Prenesti for Sharecast.com