European stocks rose Friday after losses in Asia, as traders awaited key US inflation data and digested President Donald Trump’s fresh tariffs set to impact pharmaceuticals and other sectors.

The dollar dropped ahead of the Federal Reserve’s preferred gauge of inflation — the personal consumption expenditure (PCE) index — with traders keenly seeking clues on how much further the US central bank could cut interest rates this year.

Official data Thursday showing faster-than-expected US economic growth in the second quarter dampened slightly expectations of a Fed cut next month, which would follow on from its September reduction, the first this year.

“On the surface, strong GDP should be good news but the problem is, such strong growth doesn’t support further Federal Reserve rate cuts, and

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