European Stock Markets Steady Amid Focus on U.S. Inflation Data

European stock indices showed mixed but subdued movement on Wednesday, as investors awaited key U.S. inflation data. The DAX index in Germany remained relatively unchanged, France’s CAC 40 slipped by 0.2%, and London’s FTSE 100 saw a slight uptick of 0.1%.

U.S. Inflation in Focus for Global Investors

With little economic data from Europe, market participants are honing in on the anticipated October inflation figures from the United States, a critical indicator for Federal Reserve rate policy. Analysts expect annual consumer inflation to have risen to 2.6% in October, compared to 2.4% the previous month. Core inflation, which excludes food and energy, is forecasted to hold steady at 3.3%.

Minneapolis Fed President Neel Kashkari cautioned that inflationary pressures might prompt the Fed to maintain its current interest rates, causing traders to slightly reduce the odds of a December rate cut. The probability of a 25-basis-point cut has fallen to 64.2%, down from 66.7% the previous day.

Looking ahead, U.S. producer price data on Thursday and retail sales data on Friday will provide further economic insights, while the U.K. will release its GDP figures.

Corporate Developments: Just Eat Takeaway and Siemens Energy

In the corporate realm, Just Eat Takeaway’s stock surged by 18% following its announcement of a $650 million deal to sell its U.S. subsidiary Grubhub to Wonder. The meal delivery giant has been seeking to divest Grubhub since acquiring it in 2020 for $7.3 billion, aiming to streamline its business operations.

Siemens Energy shares jumped 15% after the company decided not to propose a dividend for the fiscal year 2024. This decision reflects financial restrictions related to project guarantees backed by the German government.

On the other hand, ABN Amro shares dipped 0.3% despite the Dutch bank reporting better-than-expected third-quarter profits, bolstered by robust net interest income and fee performance.

Investors continue to closely monitor these corporate results, alongside macroeconomic indicators, as key drivers for market sentiment this week.