European markets are experiencing a choppy session on Wednesday, following strong gains in the previous trading day fueled by reports of a possible Ukraine-Russia summit.
In the U.K., inflation data for July showed consumer prices rising faster than expected, driven mainly by higher transport costs. The Consumer Price Index increased 3.8% year-on-year, up from 3.6% in June, slightly above analyst projections of 3.7%. This has tempered expectations for a potential Bank of England rate cut.
In Germany, producer prices fell for the fifth consecutive month, reflecting lower energy costs, according to Destatis. The Producer Price Index dropped 1.5% year-on-year in July, slightly steeper than June’s 1.3% decline.
Looking at indices, the DAX is down 0.3%, while the CAC 40 rises 0.2% and the FTSE 100 climbs 0.7%.
Defense companies are retreating as optimism about a potential Russia-Ukraine peace deal grows. Rheinmetall (TG:RHM) and Hensoldt (TG:HAG) both fell roughly 1%.
Energy stocks saw notable gains, with Ithaca Energy (LSE:ITH) surging 9% after lifting its 2025 production forecast for the second time this year.
In other corporate news, building materials firm Geberit (TG:GBRA) dropped 2.3% after reporting a slight dip in first-half profits, and IT services provider Computacenter (LSE:CCC) lost 1% following the appointment of a new finance chief.
Meanwhile, Swiss-American eye-care group Alcon (NYSE:ALC) plunged nearly 10% after lowering its net sales guidance for 2025, citing tariff-related pressures.
Overall, European markets are navigating a mix of geopolitical optimism and uneven corporate and economic reports.
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