European stocks inch up

European stocks edged higher on Wednesday, with gains in travel stocks offsetting weak German business sentiment data, while global markets were range-bound ahead of a policy update from the US Federal Reserve later this week.

The region-wide STOXX 600 index rose 0.1 per cent after a record close on Wall Street. The European benchmark itself was just less than a percent away from its peak.

Travel and leisure stocks gained 1.4 per cent to hit their highest level in almost two weeks, while utilities lagged.

German business morale fell for the second month running in August as companies took a dimmer view about the coming months due to rising numbers of COVID-19 cases and supply bottlenecks, a survey from the Ifo institute showed.

Earlier this week, IHS Markit’s survey showed euro zone business activity dipped from July’s two-decade-high monthly pace.