European stock markets traded higher Wednesday, with the FTSE 100 outperforming after better-than-expected U.K. growth data, although moves are limited ahead of key U.S. inflation data. At 3:40 AM ET (0840 GMT), the DAX in Germany traded 0.1% higher, the CAC 40 in France rose 0.1%, while the U.K.’s FTSE 100 climbed 0.6%. While welcome news, global stock markets have been fretting that this growth will result in a sharp jump in inflation, pushing central banks, and the U.S. Federal Reserve in particular, into tightening their ultra-easy monetary policies earlier than they had previously guided for.
Following Tuesday’s inflation fueled sell-off, U.S inflation figures due out later in the day will be the key driver for the majors.
Inflation is one of the key measures of an economy's health, and, as countries bounce back and fall in and out of crippling COVID-19 lockdowns, is an increasing worry for investors.