European Markets Mixed Amid Inflation Data and BoE Rate Expectations

On Wednesday, major European stock markets showed a mixed performance as investors digested recent economic data and looked ahead to the Bank of England's (BoE) interest rate decision. In the UK, inflation rose from 2.3% to 2.6% in November, while producer prices declined by 0.6%. Meanwhile, in the Eurozone, construction output increased by 1% in October, and inflation was revised down to 2.2% for November.

The DAX and FTSE 100 indices closed flat, while the EURO STOXX 50 gained 0.31%, with Infineon Technologies AG advancing 2.15%. The CAC 40 saw a 0.26% jump, driven by Renault SA's 5.21% gain following reports of potential merger talks between Nissan and Honda. Investors are now closely watching the BoE's rate decision on Thursday, which is expected to reflect the latest inflationary trends.

In currency trading, the euro and the pound sterling both fell 0.13% against the dollar, trading at $1.04744 and $1.26924, respectively, by 5:32 pm CET.