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European Shares To Open Steady Ahead Of US Inflation Data

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European stocks may open a tad higher on Wednesday after U.S. equities closed higher for a third straight session overnight, continuing to make up previously lost ground after the previous week's rout that wiped $2 trillion from U.S. shares last week.

Asian shares are trading mixed in cautious trade ahead of Lunar New Year holidays and the U.S inflation report due later in the day, which may provide further cues on interest-rate changes in the world's largest economy.

A spike in inflation on the back of a tightening labor market and increased government spending may push Treasury yields higher once again and send equities spiraling lower.

U.S. reports on producer prices, housing starts and homebuilder confidence are also due to be released later in the week.

Earlier in the day, data out of Japan showed that the country's fourth-quarter GDP grew at a slower than expected 0.5 percent annual pace, marking the eighth straight quarter of expansion.

Eurostat is slated to release euro area GDP and industrial production data later in the session. GDP is seen expanding 0.6 percent, in line with the flash estimate.

Overnight, the Dow Jones Industrial Average inched up 0.2 percent, the Nasdaq Composite rose half a percent and the S&P 500 gained 0.3 percent.

European markets ended Tuesday's session in the red as earnings proved to be a mixed bag and the euro strengthened against the dollar.

The pan-European Stoxx Europe 600 index declined 0.6 percent. The German DAX dropped 0.7 percent, France's CAC 40 index shed 0.6 percent and the U.K.'s FTSE 100 slid 0.1 percent.

by RTTNews Staff Writer

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