Investing.com – European stock markets rose on Wednesday, ahead of the release of highly influential monthly US inflation data, after UK consumer prices showed signs of cooling.
At 03:05 ET (08:05 GMT), in Germany it rose 0.3%, in France it gained 0.3% and in the United Kingdom it rose 0.7%.
US inflation data is great
Investors are tentatively waiting for the release of the latest data from the United States, later in the session, since this could change the expectations of the future monetary policy from the Federal Reserve.
Markets have already pushed up expectations for the Fed’s next rate hike in June after the unexpectedly strong jobs report earlier in the month.
Economists expect the December CPI to show an increase of 2.9% year-on-year, an increase of 0.4% month-on-month, while the core measure, which excludes the volatile components of food and energy, is expected to increase 0.3% monthly, a 3.3% annual gain.
While the Fed was confident that inflation had moderated enough to begin cutting interest rates in September, the rate of annual inflation remained above the Fed’s 2% target.
US data for December was surprisingly tame on Tuesday, with the core reading flat on the month.
Back in Europe, the British unexpectedly slowed to an annual rate of 2.5% in December from 2.6% in November, while core measures of inflation fell more sharply.
It will announce its next interest rate decision on February 6, and this cooling of inflation could convince policymakers to cut interest rates again, especially after government debt yields of the UK have recently reached 16-year highs amid concerns about Britain’s fiscal health under the leadership. of chancellor Rachel Reeves.
American banks on fire
In corporate news, the focus will be on the results of the fourth quarter of 2024 in the United States, with results from some of the largest American banks – including Citigroup (NYSE: ), Goldman Sachs (NYSE: ) and JPMorgan Chase (NYSE: ) — due later in the session.
Lenders were expected to announce stronger earnings, fueled by a robust deal and business.
Elsewhere, shares of Experian ( OTC: ) rose after the leading global data and technology company reported robust performance for the third quarter of fiscal 2025.
Hey (LON: ) shares rose 1.6% despite the British recruiter forecasting first-half operating profit below market expectations, citing weakness across Europe, and said s He expected the conditions to remain subdued for a short time.
Crude oil gains after US inventories fall
Oil prices rose on Wednesday, helped by a drop in U.S. crude inventories as well as concerns that new sanctions on Russian oil exports will disrupt global supplies.
At 03:05 ET, U.S. crude futures (WTI) fell 0.6% to $76.82 a barrel, while the contract fell 0.4% to $80.28 a barrel.
Prices fell on Tuesday after the US Energy Information Administration predicted oil would come under pressure over the next two years as supply outstrips demand.
That said, the market found some support from a fall in the United States, the world’s largest oil consumer, reported by the American Petroleum Institute at the end of Tuesday.
Traders also continue to focus on Russian oil sanctions, amid uncertainty over how much Russian supply will be lost in the global market and whether alternative measures can make up for the shortfall.
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2025-01-15 08:13:00
