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U.S. CPI at 1230 GMT
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July 11 Reuters European shares extended their gains on Thursday as more upbeat earning updates rolled in, although the focus is on U.S. inflation data for cues on the timing of the Federal Reserve39;s first interest rate cut.

The panEuropean STOXX 600 index climbed 0.5 by 0817 GMT, led by gains in the construction and materials sector. Oil and gas was the only sector trading the red with a marginal decline.

London39;s FTSE 100 climbed 0.2 as data showed Britain39;s economy grew more quickly than expected in May, although that added to doubts about the possibility of the Bank of England lowering rates next month.

Outperforming their European peers, French stocks rose 0.6, led by media group Vivendi39;s 3 surge after JP Morgan placed the stock on its positive catalyst watch.

All eyes will now be on U.S. consumer prices data at 1230 GMT 0830 a.m. ET, which is expected to show headline inflation moderated to 3.1 in June from 3.3 the previous month.

Figures in line, or ideally softerthanexpected if also combined with soft weekly jobless claims should keep the Fed doves in charge of the market, further boost appetite for bonds, pressure yields and the U.S. dollar to the downside and give further support to the equities rally, said Ipek Ozkardeskaya, senior analyst…