European Stock Markets Update

European stock markets edged marginally higher on Wednesday, with cautious investors ahead of crucial US inflation figures and the upcoming ECB policy-setting meeting.

At 07:00 ET (12:00 GMT), Germany's DAX was up 0.1%, France's CAC 40 rose 0.1%, and the UK's FTSE 100 gained 0.1%.

Tight Trading Ranges

European stock indices have traded in tight ranges, as investors are reluctant to take significant positions ahead of the US consumer price index release later in the session.

Economists surveyed by Dow Jones expect a 0.3% monthly rise in November CPI and a 2.7% annual increase. The ‘core’ figure, excluding food and energy, is expected at 3.3%, unchanged from October.

The market anticipates that these expected numbers won't impede another interest rate cut of 25 basis points at the December 17-18 meeting. However, signs of strengthening inflation could alter expectations for this and future policy meetings.

Also causing caution is Thursday’s ECB policy-setting meeting, its final one of the year, where a 25-bps rate cut is widely expected.

Corporate Updates

Inditex Falls on Sales Miss

Inditex (BME:ITX) stock slumped 6% after the world's largest listed fast-fashion retailer missed quarterly sales and profit expectations, despite reporting a strong holiday shopping season.

British American Tobacco (LON:BATS) stock rose 1% after reaffirming its full-year guidance for 2024, maintaining expectations for low-single-digit organic revenue and profit growth.

Tui (ETR:TUI1n) stock gained 1% following 2024 results showing revenue and EBIT growth, alongside a stronger-than-expected leverage position.

Oil Prices Rise Amid Stimulus Optimism

Crude prices increased on Wednesday amid expectations of more economic stimulus from China, the world's largest crude importer. At 07:00 ET, US crude futures (WTI) gained 1.2% to $69.42 a barrel, while Brent rose 1.1% to $73.01.

Chinese authorities have pledged to implement targeted stimulus measures to boost economic growth, raising hopes for recovering oil demand. Trade data also indicated a sharp increase in Chinese oil imports through November.

However, gains were limited due to unexpected growth in US oil inventories in the week to December 6, raising concerns about winter demand. Official data from the Energy Information Administration is expected later on Wednesday.

*(Navamya Acharya contributed to this article.)