Tuesday's stock markets begin slightly higher, with investors waiting for the publication of American inflation data later in the afternoon.

Tuesday's stock markets begin slightly higher, with investors waiting for the publication of American inflation data later in the afternoon to see what impact it will have on interest rate predictions.

The U.S. consumer price index for November is projected to indicate a reduction in the annual rate, to 7.3% from 7.7% the preceding month, while the core inflation remains steady at 0.3% month-on-month. Global stock markets are mainly in a holding pattern ahead of this report.

Investors are generally still very cautious about the possibility that further increases in borrowing costs will harm economies, and indications of persistently high inflation may prevent the Federal Reserve from beginning to dial back its aggressive rate increases when its most recent policy-setting meeting comes to a close on Wednesday.

Back in Europe, as the labour market started to feel the effects of the slowdown in consumer spending, the U.K. claimant count jumped by 30,500 in November, and the unemployment rate increased to 3.7% in October from 3.6% in September.

The headline annual German CPI figure's final reading for November was 10.0%, down from 10.4% in the preceding month.

Ahead of the European Central Bank meeting on Thursday, investors will also be paying close attention to the German ZEW economic sentiment survey, which is predicted to indicate a slight rise in confidence in the region's largest economy.

In the business news, National Grid will be in the spotlight after it reportedly cancelled standby notices for two coal units late Monday thanks to strong nuclear output and wind speeds. Earlier in the day, as a cold snap seized the U.K., National Grid had requested assistance.

As the Keystone pipeline between the United States and Canada remained halted, concerns about a tightening supply led to an extension of gains in crude oil prices from the previous day.

Since a significant leak in the American state of Kansas was discovered on December 7, Keystone has remained closed, limiting the entry of roughly 620,000 barrels per day of Canadian crude into the United States, the world's largest consumer.

The most recent data from the industry group American Petroleum Institute is due later on Tuesday before the official statistics from the Energy Information Administration on Wednesday, so the pipeline closure is likely to be reflected in the most recent U.S. oil inventories.

Earnings due today:

• ABM Industries is set to report earnings of $0.88 on revenue of $1.96bn.
• Core Main is expected to report an EPS of $0.55 on revenue of $1.69bn
• Siemens Gamesa is set to report earnings of €0.49 on revenue of €3.26bn.

(Sources: investing.com, reuters.com)