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HomeBusinessEuropean stocks largely flat ahead of crucial U.S. CPI Release By Investing.com

European stocks largely flat ahead of crucial U.S. CPI Release By Investing.com


©Reuters.

By Peter Nurse

Investing.com – European stock markets were trading broadly unchanged in tight margins on Tuesday ahead of the release of crucial US inflation data later in the session, which could set the tone for the rest of the year.

At 03:50 ET (08:50 GMT), Germany was trading 0.1% higher, the UK was up 0.1%, while France was trading 0.1%.

Global equity markets are largely in a steady pattern ahead of the US in November, which is expected to show a moderation in the annual pace, from 7.7% in the previous month to 7.3%, while holding steady at 0.3 % month-over-month .

Investors generally remain very wary of the risks of further increases in borrowing costs hurting economies, and signs of inflation remaining at elevated levels could prevent aggressive interest rate hikes from starting to slow down when the last policy-making meeting is held on closes on Wednesday.

Back in Europe, the UK rose by 30,500 in November, while October rose to 3.7%, from 3.6% the previous month, as the country’s labor market began to feel the effects of the slowdown in consumer spending.

In addition, UK wages rose faster than ever before in October, rising 6.1% year on year.

The final reading of the overall German annual figure came in at 10.0% for November, down from 10.4% the previous month.

Investors will also focus on the German survey, which is expected to show a slight improvement in confidence in the eurozone’s largest economy ahead of Thursday’s European Central Bank meeting.

In company news, InterContinental Hotels Group (LON:) stock rose 0.2% after the owner of the Holiday Inn chain announced that Michael Glover, the Americas division chief financial officer and group head of commercial finance, will be promoted to the role of chief financial officer.

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Chem ring (LON:) The stock fell 0.8% despite the British defense company reporting an increase in profits while maintaining its outlook for the current year and saying the Russian invasion of Ukraine is having a “profound impact” on defense spending and priorities.

Crude oil prices added to gains from the previous session on lingering concerns about a tightening supply as the Keystone pipeline between the US and Canada remained closed.

Keystone has remained closed since a massive leak was reported in the US state of Kansas on Dec. 7, preventing about 620,000 barrels of Canadian crude a day from entering the United States, the world’s largest consumer.

The pipeline closure is likely to be reflected in the most recent US crude oil inventories, with the latest figures from the trade association expected later Tuesday, ahead of Wednesday’s official data.

Remarks from China’s ambassador to the US late Monday that his country will continue to ease its strict COVID-19 measures also helped set the tone.

At 03:55 ET, it was trading 1.3% higher at $74.14 a barrel, while the contract was up 1.6% to $79.20. Both benchmarks rose more than 2% in the previous session.

Additionally, it was up 0.2% to $1,796.55/oz while trading 0.1% higher at 1.0541.

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