European Stock Markets Overview

European stock markets traded in tight ranges on Wednesday, with investors focused on upcoming US inflation data and digesting quarterly corporate earnings.

At 03:05 ET (08:05 GMT):
– The DAX index in Germany traded largely flat.
– The CAC 40 in France fell 0.2%.
– The FTSE 100 in the U.K. gained 0.1%.

US Inflation in Spotlight

The economic data slate was largely empty in Europe, leading investors to concentrate on the US’s October inflation data, a crucial factor for the Federal Reserve's interest rate decisions.

This Consumer Price Index (CPI) reading is expected to show annual consumer inflation rising to 2.6% in October, up from 2.4% the previous month. The 'core' number, excluding food and energy prices, is predicted to remain at 3.3%.

Minneapolis Fed chief Neel Kashkari warned that any inflation increases could prompt the Fed to keep interest rates stable. His comments led to a decrease in trader expectations for a 25 basis point cut in December, with the probability dropping from 66.7% to 64.2%.

Additionally, U.S. October producer prices and retail sales were scheduled for later in the week, alongside UK GDP data in Europe.

Just Eat Soars After Grubhub Divestment

In the corporate sector, Just Eat Takeaway (AS:TKWY) stock surged 18% following its deal to sell U.S. unit Grubhub to Wonder for $650 million. The company had been looking to divest Grubhub since 2022, after acquiring it in 2020 for $7.3 billion.

Contrarily, ABN Amro (AS:ABNd) stock fell 0.3% despite exceeding third-quarter profit expectations due to improved net interest income and strong fee performance. Siemens (ETR:SIEGn) Energy (ETR:ENR1n) saw a 15% rise after deciding against proposing a dividend for 2024.

Crude Prices Pare Losses

Oil prices rose slightly on Wednesday, recovering from recent losses but stayed near a two-week low following OPEC's downgraded global oil demand growth forecasts. By 03:05 ET, Brent climbed 0.3% to $72.08 per barrel, and U.S. crude futures (WTI) traded 0.3% higher at $68.30 per barrel. Both contracts had fallen over 5% earlier in the week due to OPEC's forecasts affected by weakness in China, the largest oil importer. The International Energy Agency will release its updated forecast on Thursday.