European Markets Mixed Ahead of U.S. Inflation Data Release

European markets are set for a mixed start on Wednesday, as global attention turns to key U.S. inflation data due later in the day.

• The U.K.’s FTSE index is expected to open slightly higher, gaining 4 points to reach 8,208.
• Germany’s DAX is predicted to rise by 25 points to 18,304.
• France’s CAC 40 remains flat at 7,404.
• Italy’s FTSE MIB is projected to increase by 66 points to 33,259, according to IG data.

Investors are closely watching U.S. economic reports this week, with the consumer price index (CPI) for August set to be released Wednesday. This will be followed by Thursday's producer price index (PPI). These reports are particularly significant as they come just ahead of the Federal Reserve’s anticipated interest rate decision at its Sept. 17-18 meeting.

Many analysts expect a rate cut, which could provide relief amid growing concerns over the U.S. economy's slowdown.

While Wall Street saw gains in key benchmarks ahead of the inflation data, Asia-Pacific markets experienced a downturn during overnight trading.

Adding to the tension, U.S. stock futures dipped slightly on Tuesday evening. Investors not only await the inflation report but also digest the outcome of the presidential debate between Republican nominee Donald Trump and Vice President Kamala Harris.

In Europe, Wednesday’s attention will also be on earnings from Spanish fashion giant Inditex, along with the release of the U.K.’s monthly gross domestic product (GDP) data.