European stock markets moved higher on Wednesday as the recent increase in crude oil prices paused and government bond yields eased from recent highs. Investors were also awaiting the Federal Reserve’s interest rate decision later in the day.
The German DAX gained 0.4%, while France’s CAC 40 and the UK’s FTSE 100 each advanced 0.6%.
Sterling weakened against other major currencies after official figures showed that UK inflation increased in August, largely reflecting higher motor fuel prices.
UK Inflation Reaches Five-Month High
UK annual consumer price inflation rose to 3.1% in August from 2.9% in July, matching market expectations and reaching its highest level in five months.
Higher motor fuel prices were a principal contributor to the increase.
Core inflation, which excludes energy, food, alcohol and tobacco, remained unchanged at 2.6%.
The pound declined against other major currencies following the release of the data.
Investors continued to monitor inflation and bond market developments ahead of the Federal Reserve’s monetary policy announcement.
Vallourec, Barratt Redrow and Nordex Advance
Several European companies recorded share price gains following corporate announcements.
Vallourec (EU:VK), a supplier of tubular solutions for the oil, gas and new energy industries, advanced in Paris after securing a contract from Subsea7 for an offshore project in Brazil.
British housebuilder Barratt Redrow (LSE:BTRW) also gained after reporting higher profit for fiscal 2026, supported primarily by revenue growth.
In Germany, wind turbine manufacturer Nordex (TG:NDX1) moved higher after receiving a 91-megawatt order from TEUT Energieprojekte GmbH.
WH Smith Declines Following Profit Guidance Update
WH Smith (LSE:SMWH) shares fell after the retailer said it expects annual pre-tax profit to be at the lower end of its previously announced guidance range.
The update contrasted with gains elsewhere in European equity markets.
European stocks were broadly higher during the session, with movements in oil prices, bond yields and expectations surrounding the Federal Reserve’s interest rate decision remaining in focus.
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