Traders work on the floor of the New York Stock Exchange during afternoon trading on June 03, 2024 in New York City.
- Data out of the U.K. on Wednesday showed that the country's economic growth was flat in April as construction output declined for the third month in a row.
- Elsewhere, the U.S. Federal Reserve's decision on Wednesday will come hours after the country's May inflation report.
LONDON — European stocks closed higher Wednesday after U.S. inflation data came in slightly lower than expected, with the latest Federal Reserve monetary policy decision due later in the day.
The pan-European Stoxx 600 ended the session up 1.15%, extending gains from before the U.S. consumer price index. The euro and British pound strengthened against the U.S. dollar, up by 1% and 0.78% against the greenback respectively.
European stocks largely ended in positive territory, with tech stocks leading gains, ending 2.4% higher.
Autos were marginally higher as investors weighed the impact of possible lawsuits in Britain for allegedly cheating emissions tests.
Data out of the U.K. on Wednesday showed that the country's economic growth was flat in April as construction output declined for the third month in a row. The monthly gross domestic product reading was in line with expectations, but was lower than March's 0.4% expansion.
U.S. stocks moved higher in morning deals after the latest inflation print showed no monthly increase in May. The consumer price index was 3.3% higher year-on-year, versus economist expectations of a 0.1% monthly gain and a 3.4% annual rate.
Money Report
The U.S. central bank is expected to maintain its benchmark overnight borrowing rate in a range between 5.25% and 5.5%. The market will be watching for updates to the Fed's economic projections, known as the "dot plot," which could clarify the path for policy. Investors have grown increasingly concerned that the recent strong jobs report and sticky inflation support a higher-for-longer interest rate environment.
Asia-Pacific markets were mixed as investors assessed inflation data from around Asia.
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