European stocks steady ahead of US inflation data; geopolitical risks in focus

Corporate results also drove certain stocks. - Construction group **Balfour Beatty** BALF.L jumped 9% after raising its annual operating profit forecast, citing strong demand for infrastructure projects in the U.S. and UK. - Danish wind turbine maker **Vestas** VWS.CO soared 18.1% after raising full-year outlook for its earnings margin. - **TKMS** TKMS.DE gained 14.6% after the warship manufacturer raised its outlook for the second time in six months. - **Kingspan** KSP.I rose 6.5% after the Irish building materials company said on Tuesday it would acquire power management systems maker BMC Manufacturing for an initial upfront payment of €850 million ($980.90 million), on a debt-free, cash-free basis. ($1 = €0.8666) Elsewhere, North Korea fired a ballistic missile toward the sea off the Korean Peninsula's east coast, South Korean and Japanese authorities said, while Taiwan protested China's planned naval drills off the island's east coast. Europe's aerospace and defence index .SXPARO led sectoral gains, rising 0.9%, as investors sought exposure to companies that typically benefit from heightened geopolitical risk. Meanwhile, the energy sector .SXEP jumped 0.9% on the back of resurgent oil prices. U.S. July CPI data, due later in the day, will not reflect the latest rise in energy costs, but could still help shape expectations for the Federal Reserve's meeting next month. Markets are pricing an even chance of a rate hike, according to CME's FedWatch tool. The luxury sector .STXLUXP was the STOXX 600's biggest decliner, down 2%, while healthcare stocks .SXDP fell 1.3%. European shares consolidated near record highs on Wednesday, as investors digested corporate earnings reports and awaited U.S. inflation data that could determine the interest rate path amid fresh geopolitical tensions. Brent crude futures rose 0.6% to $89.45 a barrel after attacks on shipping in the Middle East and fading hopes for an end to the Iran conflict. The conflict, in its sixth month, showed no signs of ending, despite repeated claims by U.S. President Donald Trump that a deal was imminent. Markets have swung between optimism and disappointment since the war began, as investors tried to gauge the risk of a broader disruption to energy supplies and global trade. The pan-European STOXX 600 .STOXX was little changed at 660.17 points, as of 0837 GMT, near a record high hit on Monday and is up nearly 12% so far this year. "The rally has continued despite uncertainty over efforts to resolve the U.S.-Iran conflict. Europe is more vulnerable than the U.S. to disruption in global energy markets because of its greater reliance on imported energy," analysts at UBS Global Wealth Management said in a note. "But even after the market’s strong gains, we believe European equities have further upside potential."

European stocks steady ahead of US inflation data; geopolitical risks in focus

Corporate results drive individual stocks

Geopolitical risks support defence and energy shares

European shares near record highs ahead of U.S. inflation data

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