European Shares Seen Modestly Higher At Open; US CPI Data Eyed

(RTTNews) - European stocks may see modest gains at open on Wednesday as investors await the U.S. consumer price index (CPI) report for December 2024 later in the day for clues on the path of Federal Reserve policy.

Focus also remains on the U.S. earnings season, with major financial institutions like JPMorgan Chase, Wells Fargo, Citigroup, and BlackRock scheduled to release their fourth-quarter results later in the day.

Economists expect U.S. consumer prices to rise by 0.3 percent in December, matching the increase seen in November. The annual rate of growth is expected to accelerate to 2.9 percent from 2.7 percent.

Asian markets were mixed after reports emerged that Donald Trump's incoming economic team is considering a plan to gradually raise tariffs month by month.

The dollar steadied after falling for the first time in six sessions following the tariff report.

Gold was marginally lower while oil edged up slightly, after having come off five-month highs on Tuesday amid predictions of a decline in global fuel demand.

U.S. stocks fluctuated before ending narrowly mixed overnight as data showed producer prices rose by slightly less than expected in December, offering temporary relief to investors worried about inflation and interest rates.

The Dow rose half a percent and the S&P 500 inched up by 0.1 percent while the tech-heavy Nasdaq Composite eased 0.2 percent.

European stocks gave up early gains to end mixed on Tuesday amid EU political uncertainty and fears about U.S. tariffs under the Trump administration.

The pan European STOXX 600 ended flat with a negative bias. The German DAX climbed 0.7 percent and France's CAC 40 gained 0.2 percent while the U.K.'s FTSE 100 eased 0.3 percent.