Loss-making Burberry jumps 13% after unveiling overhaul plan; European markets open slightly higher

European markets opened moderately higher Thursday as traders assessed the global inflation outlook and the possible trajectory of central bank rate cuts.

The pan-European Stoxx 600 was up 0.19% in early deals, with sectors and major bourses diverging. Telecoms stocks led gains, up 0.88%, while household goods ticked 0.48% lower.

Shares of Burberry jumped 13% at 08:32 a.m. London time, after the British luxury house announced a sweeping overhaul strategy to stem declining sales.

It’s another busy day of earnings with Siemens, Bilfinger, Merck, Fincantieri, Geox, Generali, Veon, Swiss Re, Metro Bank, Aviva and Deutsche Telekom among those reporting during the session. European employment figures are also due to be published.

Investors are assessing the likelihood of another interest rate cut by the U.S. Federal Reserve in December after the latest U.S. inflation data. The October consumer price index came in as expected on Wednesday, but signaled that the Federal Reserve’s fight against inflation is yet to be won.

Core CPI, which excludes volatile food and energy prices, rose by 0.3% for a third straight month, with the 12-month rate at 3.3%.

Investors are also deliberating whether a post-election rally following Donald Trump’s decisive victory last week still has legs after propelling U.S. major averages to new highs. U.S. stock futures were little changed Wednesday night, and Asia-Pacific markets traded in mixed territory.