European markets rise despite UK inflation, Ukraine worries

Investing.com -- European stock markets opened higher on Wednesday as investors watched out for escalating geopolitical tensions from the Ukraine-Russia conflict alongside higher-than-expected U.K. inflation data for October.

At 03:14 ET (08:14 GMT), Germany’s DAX index rose 0.6%, France’s CAC 40 was up 0.5%, and the UK’s FTSE 100 was up 0.1% as inflation data capped gains. U.K. inflation jumps in October, beating expectations

U.K. inflation surged more than expected in October, rising to 2.3% compared to 1.7% in September, according to data released Wednesday by the British Office for National Statistics. 

Core inflation, which strips out volatile items such as energy, food, alcohol, and tobacco, edged slightly higher to 3.3% in October from 3.2% the previous month.

The country’s services sector, a key contributor to the economy, saw price growth increase modestly to 5.0% from 4.9% in September, marking the lowest rate in over two years.

These figures are likely to play a role in the Bank of England’s next interest rate decision on December 19, with one more inflation report due before the meeting. Geopolitical tensions weigh on sentiment

Global markets stumbled on Tuesday after heightened tensions between Russia and Ukraine. Russia’s revised nuclear doctrine and Ukraine’s deployment of U.S.-supplied long-range ballistic missiles targeting Russian territory have significantly raised the stakes in the ongoing conflict, fueling concerns about broader instability in the region. Severn Trentreports profit growth in first-half on higher bills, cost savings

British water provider Severn Trent (NS:TREN ) reported an increase in first-half profits on Wednesday, driven by reduced costs and higher customer bills.

The utility reported a pre-tax operating profit of £297.8 million for the six months ending September 30. This marks a rise from £255.1 million during the same period last year. Crude oil edges higher amid Ukraine tensions and rising Chinese imports

Crude oil prices saw a modest rise on Wednesday, influenced by escalating tensions in the Ukraine conflict and signs of increasing crude imports from China.

By 03:14 ET, Brent crude climbed 0.4% to $73.61 per barrel, while U.S. crude (WTI) rose 0.5% to $69.56 per barrel.

However, gains were capped by a reported rise in U.S. crude inventories, signaling an oversupply relative to demand.

Source: Investing.com