Aug 11 (Reuters) – European shares edged higher on Tuesday, lifted by energy stocks as Middle East uncertainty kept oil prices elevated, while investors awaited a slate of economic data later this week for fresh clues on growth, inflation and the path of interest rates.
The pan-European STOXX 600 was up 0.1% at 661.39 points, as of 0717 GMT.
Rising energy prices supported oil and gas stocks, but concerns that a prolonged disruption around the Strait of Hormuz could stoke inflation and cloud the outlook for monetary easing kept broader risk appetite in check.
Energy sector jumped 1% as oil prices touched their highest level this month so far. [O/R]
U.S. President Donald Trump on Monday responded to Iran’s conditions for a peace deal with demands of his own, including compensation for people killed in wars, attacks and protests in a rhetorical escalation that could further complicate efforts to reopen the key oil shipping route.
Travel and leisure sector fell 0.7%, reflecting renewed concerns over elevated fuel costs.
Technology stocks rose 0.4%.
Elsewhere, corporate news was relatively thin as the European earnings season drew to a close.
Investors will closely watch euro zone employment figures and U.S. consumer price data later this week for clues on the path of interest rates. Euro zone GDP data is also due.
Among early movers, Alcon gained 5.7% after the Swiss-American eye-care company raised its full-year earnings forecast.
(Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Harikrishnan Nair)
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