BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - European stocks are seen opening on a firm note on Wednesday as investors await the release of a closely watched report on U.S. consumer price inflation for directional cues.
The annual rate of consumer price growth is expected to have accelerated to 3.7 percent in September from 3.4 percent in August.
The data along with the release of Thursday's producer price index figures and Fed Chair Kevin Warsh's last speech before the upcoming rate meeting could affect future Federal Reserve decisions.
New York Fed President John Williams said on Tuesday he believes it might be appropriate to raise interest rates one more time this year, but there is no need for further tightening in 2027.
Fed Governor Christopher Waller noted that the surge in U.S. Treasury yields to 24-year highs is driven by stronger economic growth and AI investment, adding that inflation expectations remain well anchored.
CME Group's FedWatch Tool currently indicates a 23 percent chance of a Fed rate hike later this month and an 88 percent probability of an increase in December.
Asian stocks were mixed, steadying after two days of losses as pressure on tech stocks eased. South Korean stocks rebounded after five straight sessions of losses as foreign investors returned to the market.
China's consumer price inflation rose slightly in September, driven by higher fuel prices while producer price inflation hit the highest level in more than four years, official data revealed earlier today.
Consumer prices rose 0.9 percent in September from a year ago, slightly faster than the 0.8 percent increase seen in August.
Producer price inflation accelerated to 5.0 percent from 3.8 percent in August, hitting the highest since June 2022.
Meanwhile, China's exports and imports surged past expectations in September, according to official data.
Exports grew by 36.3 percent year-on-year in the month, marking the fastest pace since February on the back of rising global demand for AI-related goods. Imports surged 31 percent, the fastest increase since June.
The U.S. dollar languished after falling from an 18-month high in the previous session. Gold held steady at $4,160 an ounce after falling 0.8 percent in the previous two sessions.
Brent crude prices held firm above $106 a barrel, recouping losses from the previous session amid escalating hostilities between Saudi Arabia and Iran-backed Houthi rebels.
Saudi Aramco's Dhahran headquarters was hit during a Houthi missile attack on Tuesday, stoking fresh uncertainty over a recovery in energy shipments from the Persian Gulf.
Tehran has intensified attacks on ships sailing through the Strait of Hormuz, although the U.S. Central Command said it had helped facilitate the passage of more than 19 million barrels of crude though the strategic waterway on Monday.
U.S. President Donald Trump, who is facing growing backlash over his plan to import diesel from Russia, defended the agreement and said the additional supplies would enter the global market and help ease elevated prices.
Overnight, U.S. stocks fluctuated before ending modestly lower as mixed earnings news from financial giants Wells Fargo, JPMorgan Chase and Goldman Sachs failed to quell broader concerns about inflation and potential Fed rate hikes.
A deepening global semiconductor sell-off on concerns over high artificial intelligence spending, rising financing costs and Chinese competition also added to pressure.
The Dow dipped 0.4 percent, the tech-heavy Nasdaq Composite slipped 0.2 percent and the S&P 500 edged down marginally.
European stocks gave up early gains to end slightly lower on Tuesday, retreating from a one-week high as benchmark gas prices hit their highest level in nearly four years on concerns over low storage levels and potential supply disruptions.
The pan-European STOXX 600 edged down 0.1 percent. The German DAX, France's CAC 40 and the U.K.'s FTSE 100 all slipped by 0.1 percent.
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