European markets higher after choppy start to the week; euro zone inflation ticks up

LONDON — European stocks were higher Tuesday after a mixed start to the trading week.

The Stoxx 600 index was up 0.5% by 1:18 p.m. London time, with most sectors and major bourses trading in the green. Travel and leisure stocks led gains, up 1.08%, while household goods dipped 0.52%.

Inflation in the single currency euro area rose at an annual rate of 2.6% in May, up from 2.4% in April, fresh data from the EU's statistical office Eurostat showed Tuesday. Annual inflation within the wider EU was 2.7%, up from 2.6% the previous month.

Investors will be closely watching the latest print for an indication of where the European Central Bank may go next, having last month cut interest rates for the first time since 2019.

Meantime, investors are looking ahead to the Bank of England's policy rate decision on Thursday. The Bank is widely expected to hold rates steady at 5.25%, with the majority of economists polled by Reuters forecasting an August cut.

Asia-Pacific markets rebounded overnight in Tuesday as Wall Street surged Monday, with investors awaiting the Reserve Bank of Australia's interest rate decision. Meanwhile, S&P 500 futures are near flat Monday night after a winning day on Wall Street as investors gear up for May retail sales data.

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