Stocks rise as US housing starts rebound, inflation slows

Stocks rose on Tuesday. The S&P 500 climbed 0.5 percent while the STOXX Europe 600 gained 0.6 percent.

The US dollar rose 0.3 percent against the euro as well as the yen.

Markets were boosted by better US economic data on Tuesday.

US housing starts rebounded in July, surging by 15.7 percent after falling in the previous two months. Building permits jumped 8.1 percent last month.

Meanwhile, US inflation slowed in July. Consumer prices rose 0.1 percent last month, down from 0.3 percent in June.

Data from the UK on Tuesday showed that inflation there fell even more sharply in July. The inflation rate fell to 1.6 percent last month from 1.9 percent in June after consumer prices fell 0.3 percent in July.

Annual house price inflation also slowed to 10.2 percent in June from 10.4 percent in May. Nevertheless, for the second quarter as a whole, the annual increase of 10.2 percent was the biggest since the third quarter of 2007.