Mixed European Markets Ahead of US Inflation Data Amid Ongoing Middle East Tensions

European stock markets opened mixed on Wednesday ahead of US inflation data releases. The FTSE 100 index in London fell 0.1% to 10,832.46 points, while the CAC 40 in Paris dropped 0.2%. Meanwhile, the DAX 40 in Frankfurt rose 0.2%, and the AIM all-share was up 0.2% at 801.31.

The pound remained steady against the US dollar, trading at USD1.3510, while Brent oil prices continued to hover around the $90 per barrel mark due to ongoing tensions in the Middle East. ING analyst Chris Turner noted that inflation trends will primarily drive the next Federal Reserve move, and consensus is looking for a 0.1% month-on-month rise in US headline inflation and 0.2% core inflation.

US consumer price inflation data is set to be released at 1330 BST on Wednesday. The data is expected to show a slowdown in the annual rate of US inflation to 3.4% in July from 3.5% in June, according to consensus cited by FXStreet. Gold prices rose to USD4,401.97 an ounce on Wednesday.