European stocks are expected to record slight increases upon the opening on Wednesday as investors anticipate the release of the U.S. consumer price index (CPI) report for December 2024, which is expected to provide insights into the Federal Reserve's future policy direction.
Attention is also directed towards the U.S. earnings season, with major financial entities such as JPMorgan Chase, Wells Fargo, Citigroup, and BlackRock set to announce their fourth-quarter financial results later today.
Economists predict that U.S. consumer prices will rise by 0.3 percent in December, consistent with the increase from the previous month. The annual growth rate is anticipated to accelerate to 2.9 percent, up from 2.7 percent.
Asian markets presented a mixed picture following reports that Donald Trump's incoming economic team is contemplating a strategy to incrementally raise tariffs each month.
The dollar stabilized after a dip, marking its first decline in six sessions, which was prompted by the tariff news.
Meanwhile, gold prices saw a slight decrease, and oil prices ticked upward modestly, after having retreated from five-month highs on Tuesday amid forecasts of a reduction in global fuel demand.
U.S. stocks showed volatility but concluded the session mostly unchanged overnight, as data indicated that producer prices advanced slightly less than anticipated in December, providing interim relief to investors concerned about inflation and interest rates.
The Dow Jones Industrial Average rose by 0.5 percent, and the S&P 500 edged upwards by 0.1 percent, whereas the tech-focused Nasdaq Composite declined by 0.2 percent.
In Europe, stocks relinquished early gains to finish the day mixed on Tuesday amid uncertainties within the EU political landscape and apprehensions about U.S. tariffs under the Trump administration.
The pan-European STOXX 600 index closed almost unchanged but with a slight negative tilt. Germany's DAX increased by 0.7 percent, France's CAC 40 added 0.2 percent, while the U.K.'s FTSE 100 fell by 0.3 percent.
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