European bourses set to open higher as global markets await U.S. inflation data

Figures from the Association of International Retail show American visitors spent less in the U.K. last year compared to 2019.

The group says that the decision to end tax-free shopping for international visitors back in 2021 has meant that Americans now wait until getting to mainland Europe to make their purchases. The Association also advocates for VAT-free shopping for international visitors coming into the U.K., claiming it could add a significant boost to the economy.

— Andreea Gheorghe

Norway’s $2 trillion sovereign wealth fund — the largest of its kind in the world — posted a return of 5.7% in the first half of the year, citing strong returns on financial stocks.

On its equity investments, which accounted for 70.6% of holdings at the end of June, the fund saw a 6.7% return. Its fixed income investments saw a 3.3% return, while its real estate investments returned 4%.

The fund’s unlisted renewable energy infrastructure holdings returned 9.4%.

Overall, the fund’s return was 5 basis points lower than the return on its benchmark index.

“The result is driven by good returns in the stock market, particularly in the financial sector,” Nicolai Tangen, CEO of Norges Bank Investment Management (NBIM) — which manages the fund on behalf of the Norwegian population — said in a statement on Tuesday.

The strength of the Norwegian krone weighed on the fund’s value in the first half. As the krone gained around 11.5% against the U.S. dollar in the reporting period, it contributed to a fall in value of 1 billion kroner ($97.7 million), NBIM said.

Set up in the 1990s to invest excess revenues from Norway’s oil and gas industry, the fund currently invests in more than 8,500 companies across the world. Owning almost 1.5% of all listed companies, it’s the world’s biggest single investor in stocks.

In the first quarter of the year, the fund reported a $40 billion loss after a sell off in the tech sector.  

The results come a day after NBIM announced it would sell all its investments in Israeli companies that aren’t in its equity benchmark index “as soon as possible,” and terminate contracts with external asset managers in Israel.

“These measures were taken in response to extraordinary circumstances,” Tangen said on Monday. “The situation in Gaza is a serious humanitarian crisis. We are invested in companies that operate in a country at war, and conditions in the West Bank and Gaza have recently worsened. In response, we will further strengthen our due diligence.”

— Chloe Taylor

Good morning from London, and welcome to CNBC’s live blog covering all the action and business news in European financial markets on Tuesday.

Futures data from IG suggests a generally positive open for European indexes, with London’s FTSE 100 seen opening 0.14% higher, France’s CAC 40 up 0.3% and Germany’s DAX up 0.25%, and Italy’s FTSE MIB 0.27% higher.

Regional bourses closed in mixed territory on Monday, with the regional Stoxx 600 shedding 0.06%.

Global investors remain focused on the tariff landscape this week, with traders digesting U.S. President Donald Trump’s decision to delay higher U.S. tariffs on Chinese goods for another 90 days.

Asia-Pacific markets mostly rose overnight as investors assessed the U.S.-China trade truce that gives the world’s largest economies more room to negotiate a deal.

In the U.S., traders are focused on inflation data out later today. The consumer price index and the producer price index, due out Thursday, will be significant factors in the direction interest rates take at the Federal Reserve’s next meeting in September.

— Holly Ellyatt

There are no major earnings reports from Europe on Tuesday, but analysts will be looking out for the latest U.K. jobs data, due at 7 a.m. London time, and economic sentiment data from Germany.

Investors are also keeping an eye on the latest U.S. consumer price index report, hoping to gather potential insight into how the Federal Reserve will handle short-term interest rates, especially as the S&P 500 hovers near an all-time high.

Economists polled by Dow Jones expect the index to advance 0.2% month over month in July, and 2.8% on an annualized basis. So-called core consumer price index, which strips out food and energy from the reading, is expected to climb 0.3% month over month and 3.1% year over year.

— Holly Ellyatt, Brian Evans