European stocks slip slightly ahead of key US consumer inflation data

European stock markets slipped slightly Wednesday, with investors focusing on upcoming US inflation data as well as digesting more quarterly corporate earnings. 

At 07:15 ET (12:15 GMT), the DAX index in Germany traded 0.3% lower, the CAC 40 in France fell 0.2%, while the FTSE 100 in the U.K. slipped 0.1%. US inflation in spotlight 

The economic data slate is largely empty in Europe Wednesday, and thus investors are likely to focus on October’s inflation data out of the US, a likely key factor when it comes to the Federal Reserve’s decision to cut or maintain interest rates in the world’s largest economy.

This CPI reading is expected to show that annual consumer inflation rose to 2.6% in October, up from 2.4% the prior month, while the widely-watched annual ‘core ’ number, which excludes volatile food and energy prices, is seen remaining at 3.3%.

Minneapolis Fed chief Neel Kashkari warned on Tuesday that any increases in inflation could see the Fed keep rates on hold. 

His comments saw traders trim bets on a 25 basis point cut in December, with traders pricing in a 64.2% chance for a cut, down from yesterday’s 66.7% probability of a cut, according to CME Fedwatch .

U.S. October producer prices on Thursday and US retail sales on Friday fill out the week, while in Europe, UK GDP data is scheduled.  Allianz reports solid Q3

In the European corporate sector, Allianz (ETR:ALVG ) stock rose 1.3% after the German financial services company reported solid third-quarter results for 2024, surpassing market expectations in key areas of its operations. 

ABN Amro (AS:ABNd ) stock slipped 1.7% after the Dutch lender postponed a decision on potential share buybacks until the second quarter of 2025, even after beating third-quarter profit expectations, driven by sustained improvement of net interest income, and strong performance of fees.

Siemens (ETR:SIEGn ) Energy (ETR:ENR1n ) stock rose 14% after the German energy company decided against proposing a dividend for the 2024 fiscal year, citing limitations to its payout policy as a result of obtaining project guarantees last year that are backed by the German government.

Smiths Group (LON:SMIN ) stock rose 11% after the UK engineering group raised its full-year outlook following its strong first quarter performance. 

Just Eat Takeaway (AS:TKWY ) stock soared 16% after Europe's biggest meal delivery firm struck a deal to sell its U.S. unit Grubhub to Wonder for $650 million.

The Amsterdam-listed firm had been looking to offload Chicago-based Grubhub since as early as 2022, after acquiring it in 2020 in a $7.3 billion all-stock deal. Crude pares losses 

Oil prices edged higher Wednesday, paring recent losses, but remained near their lowest in two weeks after OPEC downgraded its global oil demand growth forecasts.

By 07:15 ET, the Brent contract climbed 0.2% to $72.01 per barrel, while U.S. crude futures (WTI) traded 0.2% higher at $68.28 per barrel.

Both contracts had fallen by more than 5% at the start of the week, weighed by the Organization of Petroleum Exporting Countries cutting, in its monthly report on Tuesday, its forecast for world oil demand growth in both 2024 and 2025, mostly due to weakness in China, the world's biggest oil importer.

The International Energy Agency is set to publish its updated forecast on Thursday.

 

Source: Investing.com