European stocks rose at the start of trading on Tuesday, as investors looked ahead to the Federal Reserve meeting and US inflation data.
The pan-European STOXX 600 index rose 0.2% at the start of trading, with most sectors rebounding into the green. Individual stocks led the gains, up 0.6%, while mining stocks fell 1%.
UK jobs data was released today, showing that the number of jobs rose by 0.6% year-on-year, while the unemployment rate rose to 4.4% from 4.3% quarter-on-quarter.
Annual wage growth excluding bonuses held steady at 6% in the three months from February to April, which could raise concerns for the Bank of England as it considers when to start cutting interest rates.
Markets now turn their attention to the Federal Reserve's interest rate decision and the May CPI, both due out on Wednesday.
US inflation data could be a key test for markets, especially after Friday's strong jobs report suggested the Fed may delay cutting interest rates.
Markets will also be awaiting the Fed’s updated forecasts on the timing and frequency of rate cuts. Markets are now pricing in just one rate cut this year in November, according to the CME FedWatch tool.
