UK inflation data, US CPI and earnings

LONDON — European stocks are expected to open higher Wednesday as investors in the region monitor key inflation prints from the U.S. and U.K.

The U.K.’s FTSE index is expected to open 29 points higher at 8,262, Germany’s DAX up 32 points at 17,837, France’s CAC 40 up 12 points at 7,286 and Italy’s FTSE MIB 68 points higher at 32,168, according to data from IG.

U.K. inflation rose to 2.2% in July, coming in slightly below expectations but inching back above the Bank of England’s 2% target, data from the Office for National Statistics showed.

Economists polled by Reuters had been expecting the headline consumer price index to come in at 2.3%.

It is the first print since the Bank of England cut interest rates by 25 basis points last month.

The U.K. data comes ahead of the release Wednesday of the U.S.’ consumer price index for July which is forecast to show an increase of 0.2% last month, up from a 0.1% decline in the prior month.

Investors will be assessing whether the data could prompt the U.S. Federal Reserve to begin cutting rates in September. The reading could give uncertain financial markets some direction after last week’s volatility.

The U.S. producer price index, released on Tuesday, showed wholesale prices had increased 0.1% last month. Economists expected the reading to show a monthly gain of 0.2% in July, in line with the previous month’s reading, according to Dow Jones consensus estimates.

U.S. stock futures were mostly flat on Tuesday evening while Asia-Pacific markets were mixed overnight as the Reserve Bank of New Zealand cut benchmark lending rates and Japan’s Prime Minister Fumio Kishida announced that he would step down in September.

Earnings in Europe come from UBS, RWE, Carlsberg, Aviva, Vestas Wind, TUI Group and Thyssenkrupp. Other data releases include French inflation data.