Europe open: Shares shrug off US-Iran strikes with eyes on CPI data

(Sharecast News) - European shares edged ahead at the open on Wednesday, despite the US and Iran's tit-for-tat exchanges of missile fire overnight, as investors looked ahead to American inflation data later in the day. The pan-regional Stoxx 600 index was up 0.2% to 619 at 0829.

US military officials said strikes had hit Iranian air defence, ground control stations, and surveillance radar sites near the Strait of Hormuz. Iran had responded by launching missiles at Jordan, Bahrain and Kuwait although no damage was reported.

The US strikes were ordered by President Donald Trump who claimed Iran shot down an American helicopter that was patrolling the strait. Tehran has not claimed responsibility for the incident.

Oil prices were largely unchanged, with Brent crude at just over $91 a barrel and West Texas Intermediate at $88.

US May inflation data is forecast to show a rise in core and headline inflation, with the consensus for headline CPI to hit 4.2% - its highest in three years. This would place the Federal Reserve under pressure to hike interest rates.

In equity news, Pennon Group fell after results.

Reporting by Frank Prenesti for Sharecast.com