European stocks edge lower; French industrial production impresses

investing.com:

Investing.com — European stock markets edged largely lower Wednesday amid caution ahead of key U.S. inflation data, even after the release of better-than-expected French industrial production. 

At 03:25 ET (08:25 GMT), the DAX index in Germany traded largely flat, the CAC 40 in France traded down 0.1% and the FTSE 100 in the U.K. fell 0.2%.

Data released earlier Wednesday showed that French industrial production rose 0.5% on the month in November, more than expected. 

However, this followed on from the equivalent data from Germany, released on Tuesday, falling on a month-on-month basis for the sixth month in a row, as the eurozone’s largest economy continued to struggle in the face of high energy prices and elevated interest rates.

Additionally, German construction spending is set to fall in 2024 for the first time since the financial crisis, according to a study by the DIW economic institute, as the property industry suffers its worst crisis in decades.

Stock markets rose sharply towards the end of last year on hopes that global central banks would start cutting interest rates early in 2024. 

However, inflation in the eurozone rose to 2.9% in December, reversing six months of consecutive falls, creating doubt as to when the European Central Bank would move lower.

Elsewhere, Australian inflation took a further move lower, which brings Thursday's U.S. consumer prices in focus, where a slowdown is also anticipated and needed to avoid a sharp selloff given a series of U.S. rate cuts are priced in for this year.

A speech by New York Fed President John Williams will also be studied carefully, as the influential policy maker has been on the hawkish side of the rate cut debate.

In the corporate sector, J Sainsbury (LON:SBRY)