European shares flat; key inflation data in focus

(Reuters) – European shares were flat on Tuesday, after closing 1% lower in the previous session, while investors braced for a key inflation figure for the region due later in the day.

The pan-European held its ground at 522.97 by 0710 GMT, after it logged its worst day in over one week on Monday.

Tech stocks were the biggest boost to the index, gaining 0.5%.

Energy stocks were the biggest weight, dragged by a near 5% decline in Neste Oyj

Eurozone’s flash PMI figures for September are due at 0900 GMT, while manufacturing PMIs for the bloc as well as Germany, France, Italy and Britain are set to drop within the first hour of trading.

Speeches by European Central Bank’s Vice President Luis de Guindos and ECB’s policymaker Olli Rehn are also awaited.

Among individual stock moves, Covestro jumped 4% after Abu Dhabi National Oil Company (ADNOC) said it has agreed to buy German chemicals producer for 14.7 billion euros ($16.4 billion).

Anheuser-Busch InBev gained 2.6% after Citigroup upgraded the rating on the Budweiser brewer to “buy” from “neutral”.