European equities advanced on Wednesday, lifted by Wall Street’s record highs and optimism over potential Fed rate cuts. As of 7:15 a.m. Beijing time, Germany’s DAX gained 0.5%, France’s CAC 40 rose 0.4%, and the UK’s FTSE 100 edged up 0.2%.
Investors are awaiting key U.S. inflation data, with the Producer Price Index (PPI) due Wednesday and the Consumer Price Index (CPI) set for Thursday. These figures could determine whether the Fed opts for a 25 or 50 basis-point cut next week. Meanwhile, persistently weak consumer and producer prices in China have heightened concerns over global disinflationary pressures.
In Europe, French President Emmanuel Macron appointed Sébastien Lecornu as prime minister to lead a minority government, while industrial production data from Spain and Italy showed modest growth. On the corporate side, Inditex reported weaker Q2 sales, Swiss insurer Baloise posted a 25.5% profit increase, and Novo Nordisk announced plans to cut 9,000 jobs.
Oil prices moved higher, supported by Middle East tensions and potential Russian supply curbs. Brent crude climbed 1% to $67.02 a barrel, while WTI rose 1% to $63.26 a barrel.
