Market Analysis

European stock markets saw gains on Wednesday as investors processed regional growth and inflation data ahead of the Federal Reserve's policy meeting conclusion.

At 03:15 ET (07:15 GMT), Germany's DAX traded 0.4% higher, France's CAC rose 0.4%, and the UK's FTSE climbed 0.6%.

UK growth stagnated in April, while Germany's harmonized inflation rate for comparison within the EU rose to 2.8% year-on-year in May from 2.4% in April, driven by higher service prices, according to Ruth Brand, president of the statistics office.

The European Central Bank had cut interest rates last week, citing easing inflation as supportive for stimulating the economy.

Meanwhile, attention shifted to the Federal Reserve's meeting where no change in rates was expected, although policymakers might revise down their forecast for three rate cuts this year given persistent inflation pressures.

In the energy markets, crude prices advanced on optimistic global demand outlooks. By 03:15 ET, WTI futures traded 0.7% higher at $78.46 per barrel, while Brent crude rose 0.5% to $82.34 per barrel, buoyed by a larger-than-expected decline in U.S. oil inventories, signaling increased summer travel demand.

The U.S. Energy Information Administration also raised its 2024 world oil demand growth forecast, underscoring positive sentiment in the market.

Paraphrasing text from "Reuters" all rights reserved by the original author.