European stocks rose Wednesday, boosted by strength on Wall Street overnight, as investors focused on the global inflation outlook.
At 03:15 ET (07:15 GMT), the DAX index in Germany climbed 0.5%, the CAC 40 in France gained 0.4% and the FTSE 100 in the U.K. rose 0.2%.
Inflation data in spotlight
Sentiment has received a boost in Europe Wednesday after all three major Wall Street indices hit record closing highs on Tuesday, buoyed by expectations of a Federal Reserve rate cut next week.
An easing of U.S. monetary policy is largely priced in, but key inflation prints later Wednesday and also Thursday could determine the size of the interest rate cut - the traditional 25 basis-point reduction, or a jumbo 50 bps cut.
The latest U.S. producer price index is due later in the session, and this comes ahead of Thursday’s more closely watched consumer price index reading.
Economists expect the report to show monthly increases of 0.3% across the board. If this materializes, it would push the annual headline CPI rate to 2.9%, while the core reading is expected to stay unchanged at 3.1%.
Data released earlier Wednesday showed that China’s consumer prices fell more than expected in August, as government stimulus failed to counter entrenched deflation, while producer prices extended their decline for a 35th straight month.
New French PM appointed
Back in Europe, French President Emmanuel Macron named loyalist Sebastien Lecornu as prime minister on Tuesday, indicating his determination to press on with a minority government that will not rip up his pro-business reform agenda.
However, in an unusual move in French politics, Macron’s office said the president had asked Lecornu to hold talks with all political forces in parliament to find compromises on the budget and other policies before naming his cabinet.
French markets face another major test on Friday when Fitch Ratings reviews its AA- French rating with a negative outlook. France’s credit rating was downgraded by Moody’s after its previous government collapsed last year.
Spanish industrial production rose 2.5% on an annual basis in July, an increase from the revised 1.9% growth seen the prior month.
The equivalent data is also expected from Italy later in the session, and is expected to show minimal growth on a monthly basis.
Inditex reports weaker sales in Q2
In corporate news, Inditex (BME:ITX) reported weaker sales than expected in its second quarter, but the fast-fashion retailer said the pace of sales growth picked up in August as it grapples with cautious consumers in key markets like the United States.
Swiss insurer Baloise (SIX:BALN) reported a 25.5% rise in net profit for the first half of 2025, as stronger results in its non-life business and higher investment income offset weaker life premiums and a slight decline in overall business volume.
Wegovy-maker Novo Nordisk (CSE:NOVOb) announced plans to cut 9,000 jobs, or about 11.5% of its workforce, in a restructuring, as it battles rising pressure from U.S. rival Eli Lilly.
Across the pond, Oracle Corporation (NYSE:ORCL) stock surged after the close after the software giant said on Tuesday it expects booked revenue at its Oracle Cloud Infrastructure business to exceed half a trillion dollars, boosted by growing demand for its relatively low-cost cloud infrastructure services.
Crude rises on global supply concerns
Oil prices rose on heightened geopolitical tensions in the Middle East as well as the prospect of more restrictions on Russian oil, potentially hitting global supply.
At 03:15 ET, Brent futures gained 1% to $67.02 a barrel, and U.S. West Texas Intermediate crude futures rose 1% to $63.26 a barrel.
Prices had risen during the previous trading session after Israel said it had attacked Hamas leadership in Doha, which Qatar’s prime minister said threatened to derail peace talks between Hamas and Israel, lifting tensions in the oil-rich region.
Additionally, Reuters reported Trump calling on the European Union to also steeply tariff India and China over their buying of Russian energy.
Trump has already imposed 50% tariffs on India, and was seen calling for 100% tariffs on New Delhi and Beijing.
Such a move would be designed to pressure Moscow into ending its long-running war with Ukraine, but could also limit global supplies if top buyers India and China cave in to Western pressure.
But both countries have so far signaled few plans to stop their purchases of Russian oil.
Source :
https://www.investing.com/news/stock-market-news/european-stocks-rose-global-inflation-picture-in-focus-4232657
