- EU to place further sanctions on Russia
- Gaza death toll creeps past 600
- US inflation rises in line
FTSE 100: 0.80%
CAC 40: 0.81%
FTSE MIB: 1.16%
IBEX 35: 0.83%
Stoxx 600: 0.88%
European stocks gained after US reports showed consumer prices rose in line with forecasts and existing home sales climbed more than expected.
US consumer prices climbed 2.1% year-on-year, unchanged from the previous month. On the month prices grew 0.3%, as predicted, easing back from the earlier month's 0.4% gain.
"The softer tone of June's consumer price figures does little to change our view that core inflation will rise faster than the [Federal Reserve] expects," said Capital Economics.
"There is still plenty of evidence that the decline in spare capacity is boosting price pressures in some sectors."
Existing home sales rose 2.6% in June following a 4.9% increase a month earlier. Economists had projected a 2% gain.
Ukraine, Middle East tensions
The European Union will widen its sanctions against Russia to include more individuals, Dutch Foreign Minister Frans Timmermans said.
His remarks come after a Malaysia Airlines plane crashed in Ukraine last Thursday, killing all 298 passengers on board, most of which were Dutch nationals. Russia has been accused of supplying the missiles which rebels allegedly used to shoot down the aircraft, a claim which Moscow denies.
The bodies of the victims arrived in the Ukrainian government-held city of Kharkiv today after pro-Russian agreed to hand over the plane's black boxes to Malaysian authorities and the bodies to the Netherlands.
Meanwhile, the death toll in Gaza exceeded 600 as United Nations Secretary-General Ban Ki-moon has urged Israel and the Palestinians to "stop fighting" and "start talking" to end two weeks of fighting.
US Secretary of State John Kerry said the US was sending $47m in aid to Gaza "to alleviate the immediate humanitarian crisis". Speaking in Cairo, he also said an Egyptian plan could form the basis of a ceasefire. He is expected to stay in Cairo until at least Wednesday for talks with Egyptian officials.
Tesco slid as Deutsche Bank cut the grocer's price estimate to 313p a share from 342p, amid weak trading.
ARM Holdings rallied after saying it predicts an increase in royalty revenue in the second half of 2014.
Credit Suisse Group retreated after posting a wider loss in the second quarter than forecast by analysts.
IG Group Holdings bounced higher after raising its full-year dividend 21%.
Actelion gained after the drugmaker raised its full-year profit forecast.
Norsk Hydro slumped after reporting second quarter earnings that fell short of analysts' estimates.
Publicis Groupe was lower as the French advertising company said second-quarter sales declined, missing analysts' estimates.
The euro fell 0.40% to $1.3470.
Brent crude futures dropped 0.009% to $107.66 per barrel, according to the ICE.