DAX, CAC, FTSE100, European Equities Climb as U.S. Inflation Data Fuels September Rate-Cut Expectations

European stock markets moved mostly higher on Wednesday after U.S. inflation data met forecasts, reinforcing market confidence that the Federal Reserve will lower interest rates in September.

U.S. Treasury Secretary Scott Bessent has urged the Fed to keep the option open for a larger 50-basis-point cut next month, citing recent downward revisions to U.S. job growth.

In regional economic updates, Germany’s federal statistics office, Destatis, confirmed that the country’s consumer price index rose 2.0% year-over-year in July, matching June’s increase and in line with the preliminary estimate released on July 31.

By midday, the German DAX Index was up 0.8%, the French CAC 40 Index gained 0.5%, and the U.K.’s FTSE 100 Index added 0.2%.

Notable movers:

• RENK Group (TG:R3NK) rose 2.8% after the gearbox manufacturer posted stronger-than-expected second-quarter results.
• Thyssenkrupp Nucera (TG:NCH2) slipped 2% as the hydrogen equipment supplier disclosed an unexpected quarterly loss.
• E.ON (TG:EOAE) gained over 1% after reaffirming its full-year adjusted earnings guidance and reporting improved first-half performance.
• TUI (TG:TUI1) advanced 2.6% following a quarterly earnings beat.
• Persimmon (LSE:PSN) fell 3.3% as the British homebuilder flagged ongoing market headwinds and budget uncertainty.
• Beazley (LSE:BEZ) tumbled 9% after the insurer cut its forecast for full-year premium growth.
• Balfour Beatty (LSE:BBY) declined 3.6% despite posting strong first-half 2025 financial results.
• Hill & Smith (LSE:HILS) surged more than 10% on the back of robust interim earnings.

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