European stock markets are anticipated to begin Wednesday with little change prior to the US inflation data.

In an anxiously cautious atmosphere ahead of the monthly U.S. inflation data, which might influence future Federal Reserve monetary policy, European stock markets are anticipated to begin Wednesday with little change.

Although investors wait for the publication of the U.S. CPI index for March to see how sticky prices are going to be and, consequently, the probable response from the Fed, European markets registered modest gains on Tuesday as they returned from the lengthy Easter holiday.

The Fed's aggressive rate-hiking cycle may be coming to an end, but when officials meet again in May, there may still be potential for one more rate hike.

Due to the lack of significant economic data coming in Europe on Wednesday, stock markets are probably going to trade in a steady position before the release of the U.S. inflation report.

This is anticipated to reveal that in March, the crucial core inflation rate, which excludes volatile food and energy prices.

On the business front, the French luxury goods company Louis Vuitton is scheduled to issue a sales report later on Wednesday. This information may offer hints about how demand in China, a crucial market, is reacting to the lifting of COVID-19 in the latter part of last year.

Prior to the release of the crucial U.S. inflation statistics and the government's report on crude stockpiles on Wednesday, oil prices remain stable.

Even after the API, an industry group announced that oil stocks grew by approximately 380k barrels last week, as opposed to predictions for a minor reduction, the crude benchmarks still managed to register gains of nearly 2% on Tuesday.

Later this session, the U.S. government will make its stockpile statistics available.

Key Developments:

• US CPI at 13:30 GMT.
• Crude Oil Inventories at 15:30 GMT
• FOMC Meeting Minutes at 19:00 GMT.

(Investing.com, reuters.com)