European Shares Likely To Open On Muted Note

(RTTNews) - European stocks are seen opening on a cautious note Wednesday as investors await U.S. inflation data for important clues over early rate cuts by the Federal Reserve.

The U.S. CPI and PPI data due this week will be pivotal for the Fed's rate-cut decisions.

Traders have recently become increasingly skeptical about whether the central bank will cut rates in March.

Upcoming Chinese inflation and trade data along the Taiwan elections on Saturday also remain on investors' radar.

The U.S. earnings season begins on Friday when the largest U.S. banks report their fourth-quarter results.

Asian markets traded mostly higher, though Japan's Nikkei index jumped over 2 percent to a 34-year high on bets of a delay in the Bank of Japan's plans to tighten its ultra-loose policy.

Gold was marginally lower in Asian trade and the dollar held steady while bitcoin was volatile after a false SEC approval claim for ETFs.

Oil extended overnight gains on the back of increased geopolitical tensions and industry data showing a decline in crude inventories in the U.S.

France's statistical office INSEE releases industrial production figures for November later in the day. Output is forecast to remain flat on month, reversing a 0.3 percent drop in October.

U.S. stocks ended mostly lower overnight while bond yields rose as investors awaited cues from inflation data and the start of fourth-quarter earnings season.

While the tech-heavy Nasdaq Composite finished marginally higher, the Dow gave up 0.4 percent and the S&P 500 eased 0.2 percent.

European stocks fell on Tuesday after mixed readings on German industrial output, British retail sales and Eurozone unemployment.

The pan European STOXX 600 slid 0.2 percent. The German DAX slipped 0.2 percent, France's CAC 40 shed 0.3 percent and the U.K.'s FTSE 100 edged down 0.1 percent.