European stocks edge higher; inflation data in focus ahead of Fed meeting
Investing.com — European stock markets traded with small gains Monday as investors digested regional inflation data, ahead of several central bank meetings, including a crucial gathering by the U.S. Federal Reserve.
At 03:55 ET (08:55 GMT), the DAX index in Germany traded 0.3% higher and the CAC 40 in France climbed 0.3% and the FTSE 100 in the U.K. rose 0.6%.
Investors are awaiting interest rate decisions from the Bank of Japan, the Bank of England and most importantly the Federal Reserve this week, looking for guidance about future interest rate decisions.
The European Central Bank ended the longest streak of interest rate rises in its 25-year history last week, leaving its main policy rate at 4% and stating current borrowing costs may be just enough to tame inflation if they stay at current levels for «sufficiently long».
There was some evidence of German inflation retreating, with data released early Monday showing that consumer prices rose 3.1% in October on an annual basis in the state of North Rhine Westphalia, Germany’s most populous state, a drop from 4.2% the prior month.
Spain added to the story, with the country's annual CPI figure coming in at 3.5% in October, unchanged from the previous month and below the expected 3.8%.
The other German states are set to release their inflation figures later in the session, and this could provide clues as to future ECB policy decisions.
The week also includes key economic activity readings from China, the monthly U.S. labor report as well as major U.S. third-quarter earnings, particularly from iPhone maker Apple (NASDAQ:AAPL).
Investors will also keep an eye on developments in the Middle East as Israel launched a large-scale ground assault on Gaza over the weekend but
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