- Global markets are focused on the latest U.S. inflation data due out this week; the U.S. consumer price index is set for release Wednesday and the producer price index is slated for Thursday.
- Global investors will be looking for any clues from Fed officials as to the timing of interest rate hikes too; Federal Reserve Chairman Jerome Powell's confirmation hearing takes place on Tuesday.
LONDON — European stocks climbed on Tuesday as investors look ahead to the next U.S. inflation reading on Wednesday and monitor comments from the U.S. Federal Reserve.
The pan-European Stoxx 600 closed up 0.8%, partly recouping Monday's 1.8% decline. Tech stocks added 1.9% to lead gains as investor fears over higher interest rates appeared to cool slightly.
Global markets are focused on the latest U.S. inflation data due out this week; the U.S. consumer price index is set for release Wednesday and the producer price index is slated for Thursday.
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Consumer prices in Europe and the U.S. jumped in recent months. Last Friday, figures showed that inflation in the euro zone hit a new record high in December and came in at 5% compared with the same month the previous year.
Investors are looking for any clues from Fed officials as to the timing of interest rate hikes, too.
Testifying before a Senate committee on Tuesday, Federal Reserve Chairman Jerome Powell said he expects a normalized supply chain to help ease inflation pressures in 2022, but that the central bank stands ready to hike interest rates further than projected to battle consistently high inflation.
U.S. stocks were slightly higher Tuesday, breaking away from declines in recent days amid Powell's comments. Asia-Pacific markets closed mixed overnight as investors remained concerned about inflation.
Earnings season starts
Among the top factors driving individual share price movement Tuesday was a slew of earnings announcements and trading updates.
U.K. cybersecurity company Darktrace rose almost 7% after raising its outlook on revenue growth, while analysts at Peel Hunt also upgraded the stock from "sell" to "hold." And Germany's Delivery Hero rose 5% after saying it expects its food delivery business to break even in the second half of 2022 following its acquisition of a majority stake in Spanish rival Glovo.
At the top of the European blue chip index, Swedish cloud computing firm Sinch surged nearly 10% after Goldman Sachs initiated coverage of the company's stock with a "buy" rating.
On the opposite end of the spectrum, British board game maker Games Workshop slumped almost 11% after reporting a 4% drop in pre-tax profits. The company cited higher costs and supply chain disruptions as factors contributing to slower growth.
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— CNBC's Ryan Browne, Jesse Powell and Tanaya Macheel contributed to this market report.