(Reuters) – Major European stocks were up in early trading on Wednesday, ahead of the release of July U.S. inflation data and amid renewed optimism over rate cuts by the Federal Reserve.

In Paris, the CAC 40 gained 0.67% to 7,324.50 points at around 7:35 a.m. GMT. In London, the FTSE 100 gained 0.40% and in Frankfurt, the Dax advanced 0.51%.

The EuroStoxx 50 index is up 0.53%, the FTSEurofirst 300 by 0.42% and the Stoxx 600 by 0.44%.

U.S. producer price data released Tuesday showed a weaker-than-expected increase in July as rising commodity costs were offset by falling services prices, suggesting inflation continued to slow.

Investors are now waiting for the publication of consumer prices at 12:30 GMT and then, on Thursday, retail sales in the United States to confirm the scenario of a significant cut in rates by the Fed at its monetary policy meeting next month.

Meanwhile, investors will be watching eurozone employment and GDP data due at 0900 GMT.

British inflation accelerated to 2.2% after holding steady for two consecutive months at the 2% target set by the Bank of England (BoE), according to official figures published on Wednesday.

In France, the harmonised consumer price index according to European standards (HICP) rose by 2.7% over one year in July, notably due to an acceleration in energy prices, according to data published on Wednesday by INSEE.

In stocks, UBS gained 1.3% after reporting second-quarter net profit well above expectations on Wednesday, as the bank enters a new phase of the integration of its former rival Credit Suisse.

TUI gained 2.3% after posting a bigger-than-expected rise in third-quarter operating profit, while JDE Peets gained 5.2% on a recommendation upgrade from Jefferies.

(Written by Augustin Turpin, edited by Kate Entringer)

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