European stocks tread water ahead of US inflation data

The reflection of a digital board showing trading data at the Euronext stock exchange in the La Defense business district in Paris, France, March 10, 2025. REUTERS/Benoit Tessier Purchase Licensing Rights , opens new tab

Aug 12 (Reuters) – European shares were largely subdued on ​Wednesday as investors assessed corporate earnings and fresh geopolitical tensions ahead of ‌crucial U.S. inflation data.

Brent crude futures climbed 0.8% to $89.57 a barrel after ​fresh attacks on shipping in the Middle East and fading hopes for ​an end to the Iran conflict.

The six-month-old conflict showed no signs of ending soon, despite repeated claims by U.S. President Donald Trump that a deal was imminent. Markets have swung between optimism and disappointment since the war ​began, as investors tried to gauge the risk of a broader disruption to ​energy supplies and global trade.

Elsewhere, North Korea fired another ballistic missile into the ocean, while Taiwan ‌protested ⁠China’s planned naval drills off the island’s east coast, adding to geopolitical concerns.

U.S. CPI data, due later in ​the day, will not ​reflect the latest ⁠rise in energy costs, but could still help shape expectations for the Federal Reserve’s meeting next month. Markets are pricing an ​even chance of a rate hike, according to CME’s FedWatch ​tool.

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