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European shares edged higher on Thursday amid caution ahead of US inflation data that could sway the monetary policy direction at the world’s largest economy, while Logitech dropped on cutting sales outlook after quarterly miss.

The pan-European STOXX 600 rose 0.3% by 0810 GMT. The focus is on US inflation data due at 1330 GMT, after Federal Reserve policymakers said this week the reading will help them decide on whether they can slow the pace of rate hikes.

The much-anticipated report is expected to show US consumer prices grew 6.5% year-on-year in December, moderating from a 7.1% rise in November, according to economists polled by Reuters.

The rate-sensitive tech sector fell 0.6%.

Logitech International dropped 13.8% after posting lower earnings and sales between October and December and cutting its sales outlook.

Europe’s largest sugar producer Suedzucker gained 2.3% on posting a 73.5% jump in quarterly earnings as higher sugar and biofuel prices counteracted the impact of rising energy and raw materials costs.

European stock markets open higher

British retailer Tesco fell 0.9% on keeping its full-year profit guidance after it joined retail rivals in reporting stronger than expected Christmas sales.

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