European Shares Inch Higher In Cautious Trade

European stocks were flat to slightly higher on Tuesday, with geopolitics and upcoming U.S. economic data in the spotlight.

Defense stocks were mostly lower amid easing geopolitical tensions in Iran and Russia.

The British pound fell against the euro and dollar as weak labor market data reinforced expectations that the Bank of England may cut interest rates as soon as March.

Official data showed the U.K. jobless rate rose to 5.2 percent in the fourth quarter from 5.1 percent in the preceding period.

Annual growth in employees’ average earnings including bonus was 4.2 percent but weaker than the forecast of 4.6 percent. In January, payroll employees decreased 11,000 from the previous month to 30.3 million.

Elsewhere, Destatis confirmed that German consumer price inflation rebounded to 2.1 percent in January from 1.8 percent in December because of higher food and services costs.

EU harmonized inflation accelerated to 2.1 percent from 2.0 percent in the prior month, matching the earlier estimate published on January 30.

The pan European Stoxx 600 was up 0.2 percent at 619.43 after finishing 0.1 percent higher on Monday.

The German DAX was marginally higher, France’s CAC 40 edged up by 0.1 percent and the U.K.’s FTSE 100 was up 0.4 percent.

Pharma major GSK gained nearly 2 percent in London after launching a £2 billion share buyback program.

Gaming company Rank Group rose about 1 percent after appointing Cliff Baty as its interim CFO.

Copper mining giant Antofagasta tumbled 3.2 percent despite delivering record full-year earnings.

Peer BHP advanced 1.8 percent as it posted earnings at the upper end of analyst expectations.

Swiss bio-pharma company Basilea Pharmaceutica lost 5 percent after reporting a fall in full-year earnings.

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