European stocks open higher ahead of US inflation data
European markets opened higher on Wednesday as traders await the latest US inflation data that will inform the Federal Reserve’s decision on interest rate cuts.
The focus in global markets on Wednesday will be on the US consumer inflation index, due at 8:30 a.m. Eastern time. Economists polled by Dow Jones see the headline CPI rising 0.3% on a month-over-month basis and rising 2.9% over the previous 12 months.
The data comes shortly after the December wholesale inflation report, which came in weaker than expected. The producer price index rose just 0.2%, below the Dow Jones consensus estimate for a 0.4% increase.
Both reports will inform the Fed’s interest rate policy when it meets later this month. Fed fund futures are showing a near certainty that the Fed will keep rates on hold at the conclusion of its two-day meeting later this month. Market pricing is also showing a 97% chance that rates will remain in their current target range of 4.25%-4.5% in March, according to the CME FedWatch Tool.
In Europe, U.K. inflation fell to a lower-than-expected 2.5% in December, data from the Office for National Statistics showed on Wednesday. Economists polled by Reuters had forecast the figure would be unchanged from 2.6% in November.
Source: CNBC
