European stocks muted as global markets remain attuned to Ukraine, inflation

Key Points

• President Joe Biden is heading to Brussels on Wednesday and on Thursday will attend an emergency NATO summit, meet G-7 leaders, and address EU leaders at a meeting of the European Council.
• U.K. inflation came in at an annual 6.2% in February, its highest since March 1992, as soaring food, fuel and energy costs continue to deepen the country’s cost of living crisis.

LONDON — European stocks were little changed on Wednesday as global markets continued to assess inflation concerns and Russia’s invasion of Ukraine.

The pan-European Stoxx 600 hovered around the flatline in early trade, with oil and gas stocks gaining 0.7% while banks fell 0.8%, shedding some of Tuesday’s gains.

The ambivalent trade in Europe comes after gains in major Asia-Pacific markets on Wednesday, as investors monitored oil prices and continued to assess the outlook for U.S. Federal Reserve monetary policy.

U.S. Federal Reserve Chairman Jerome Powell said earlier this week that the central bank is set to take tough action on inflation, with traders now betting the Fed will drive up interest rates even faster than expected just last week.

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European markets continue to monitor events in Ukraine closely. President Joe Biden is heading to Brussels on Wednesday and on Thursday will attend an emergency NATO summit, meet G-7 leaders, and address EU leaders at a meeting of the European Council.

Biden and his European counterparts will announce new sanctions against Russia and new measures to tighten existing sanctions during his trip to Brussels this week, national security adviser Jake Sullivan said Tuesday.

In the U.K., Chancellor Rishi Sunak will deliver his Spring Statement to Parliament on Thursday on the state of the British economy amid a cost of living crisis in the country and concerns over planned tax rises.

U.K. inflation came in at an annual 6.2% in February, its highest since March 1992, as soaring food, fuel and energy costs continue to deepen the country’s cost of living crisis.

Source : CNBC