European Shares Inch Higher In Cautious Trade

(RTTNews) - European stocks were modestly higher in cautious trade on Wednesday, with Middle East tensions, upcoming Nvidia earnings and regional inflation data in focus.

Bond remained under pressure as money markets factor in interest rate hikes from the European Central Bank and the Federal Reserve before the end of the year.

Oil prices traded lower after U.S. President Donald Trump said the war with Iran will end "very quickly."

On the trade front, the European Union has reached a provisional agreement to remove import duties on U.S. goods, keeping the bloc on track to meet Trump's July 4 deadline and avoid higher tariffs on European goods.

In economic releases, German producer prices grew 1.7 percent year-on-year in April, reversing a 0.2 percent fall in March, Destatis reported. The rate was the highest since May 2023 and marked the first rise since February 2025.

Elsewhere, U.K. consumer price inflation slowed to 2.8 percent in April from 3.3 percent in March, reflecting the fall in energy bills and reduced costs for package holidays, according to data from the Office for National Statistics.

The pan-European STOXX 600 edged up by 0.2 percent to 612.44 after finishing slightly higher on Tuesday.

The German DAX gained 0.2 percent and France's CAC 40 added 0.3 percent while the U.K.s FTSE 100 was marginally lower.

Stellantis rose about 1 percent. The automotive giant announced plans to form a Europe-based joint venture with Dongfeng Motor Group Co., Ltd to produce new energy vehicles.

Norway's Webstep tumbled 3 percent after it reported a decline in first-quarter profit, impacted by reduced revenue.

Credit and data analytics firm Experian slumped 4.7 percent in London despite reporting record annual results and announcing a fresh $1 billion share buyback program.

Coats Group, an industrial threads manufacturer, declined 2 percent after reporting a slight fall in overall revenue at constant exchange rate.

Severn Trent shares rallied 3.1 percent. The water utility upgraded its adjusted earnings forecast for 2026 after reporting robust financial results for the second half of the year.

Retailer Marks & Spencer jumped nearly 5 percent after reporting a rebound in second-half profits.