Europe Stoxx 600 Rises 0.5%; Pound Reaches $1.33 on Weak Euro Data

Commodities got a lift from the softer dollar. Copper futures settled 0.8% higher at $4.28 a pound. Gold edged up to $2,655 an ounce, recovering from last week's slide. Brent crude held near $72 a barrel as OPEC+ supply cuts offset demand concerns. The weaker dollar makes dollar-denominated commodities cheaper for non-U.S. buyers.

In equity sectors, the rotation out of financials and into rate-sensitive names was the dominant move. Insurers fell 0.5%. Utilities rose 1%. The Stoxx 600 Health Care index was flat, while energy stocks tracked oil higher. The broader index now sits at 520, just 1% below its April high.

Traders are watching the US consumer price index due Thursday. A softer-than-expected print would reinforce the global disinflation narrative, traders said. That could push the dollar lower and support European equities further. A hot number would test the rally. The bund yield decline Tuesday already priced in some of that outcome.

The next scheduled data point is the US CPI release at 8:30 a.m. ET Thursday.