The UK CPI inched higher than anticipated in September, pressuring the BoE to raise interest rates. More earnings from Tesla, P&G and IBM.

European stock markets are set to open somewhere in between today. Even though recent gains have been strong, UK inflation data points to a further aggressive monetary tightening ahead.

The UK consumer price index inched up to 10.1% in September, returning to a 40-year high hit in July.  Experts polled by Reuters had estimated the inflation rate would rise to 10% from 9.9% in August. Most likely pressuring the Bank of England to raise interest rates further. The ONS has stated that the main driver of inflation in the prior month was due to rising food prices.

Eurozone is scheduled to release its CPI data later today (10:00 AM GMT) and is also expected to reach double figures, which would be a sharp rise from August. Investors are already anticipating that the European Central Bank will raise interest rates by 75 basis points when it meets at the end of this month, adding to a combined 125bp already announced since July.

U.S. markets have bounced higher over the last few days, helped by the strong earnings reports and lessening worries around systematic risk from the UK’s debt markets. In addition, there will be data that could demonstrate how the housing market is doing with mortgage rates rising. The Fed’s ‘Beige Book’ will provide investors with a peak on economic and business conditions from a variety of areas within the U.S.

More earnings today:

1. Tesla

• Elon Musk’s electric automaker is expected to report an EPS of $1.03 with revenue of $22.5 billion.

2. Procter & Gamble

• The household product giant is due to report earnings of $1.56 a share on revenue of $20.4 billion.

3. International Business Machines

• Tech giant IBM is due to report an EPS of $1.79 a share on revenue of $13.5 billion.

(sources: ONS.gov.uk, investing.com, Reuters.com)