PARIS, Sept 30 (Reuters) - European shares inched higher in early trading on Tuesday, led by shares of Royal Bank of Scotland after the UK lender cut provisions for bad loans.
Shares in RBS surged 4.3 percent after the group said it will release 800 million pounds ($1.3 billion) from provisions it had set aside to cover losses on bad loans after an improvement in the economy, especially in Ireland.
At 0706 GMT, the FTSEurofirst 300 index of top European shares was up 0.2 percent at 1,374.36 points.
Investors awaited September inflation data for the euro zone, due at 0900 GMT, seeking cues on the prospect for European Central Bank to step up its efforts to stave off deflation risks.
Reporting by Blaise Robinson; Editing by Atul Prakash