European Stocks Tread Water Ahead of US Inflation Data
European markets were largely steady on Wednesday as investors digested corporate earnings and geopolitical tensions ahead of crucial US inflation data. The pan-European STOXX 600 was little changed at 661.26 points, but hovered near recent record highs.
Brent crude futures rose 0.8% to $89.57 a barrel after fresh attacks on shipping in the Middle East and fading hopes for an end to the Iran conflict. The US and Yemen's Iran-aligned Houthis reported separate attacks on shipping, as hopes for a resolution to the Iran conflict faded.
Tehran said the Strait of Hormuz would remain closed unless Washington accepted Iran's conditions. Markets have swung between optimism and disappointment since the war began, as investors tried to gauge the risk of a broader disruption to energy supplies and global trade.
US CPI data, due later in the day, will not reflect the latest rise in energy costs, but could still help shape expectations for the Federal Reserve's meeting next month. Markets are pricing an even chance of a rate hike, according to CME's FedWatch tool.