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Important information: The value of investments can go down as well as up so you may get back less than you invest. Investors should note that the views expressed may no longer be current and may have already been acted upon. This is a third-party news feed and may not reflect Fidelity’s views.

Europe open: US CPI data boosts Stoxx

(Sharecast News) - European shares opened higher on Friday, with sentiment buoyed by an unexpected fall in US inflation that raised hopes of a rate cut in September. The pan-European Stoxx 600 index was up 0.22% to 520 in early deals after the US consumer price index fell by 0.1% in June from the previous month for an annual rate of 3% against expectations of an increase of 0.1% and 3%.

"The news convinced investors that a September rate cut is now firmly on the cards, with the consensus of a likely reduction now topping 90%," said Interactive Investor head of markets Richard Hunter.

Investors will now eye US producer price index data later today along with major US banks posting quarterly earnings.

In equity news, Sweden's Lifco surged after quarterly earnings pleased investors.

Reporting by Frank Prenesti for Sharecast.com

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Important information: This information is not a personal recommendation for any particular investment. If you are unsure about the suitability of an investment you should speak to one of Fidelity’s advisers or an authorised financial adviser of your choice. When you are thinking about investing in shares, it’s generally a good idea to consider holding them alongside other investments in a diversified portfolio of assets. Past performance is not a reliable indicator of future returns.

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