European shares lost ground on Wednesday, mirroring a drop in Asian stock markets, as investors cautiously awaited U.S. inflation data that is expected to put the Federal Reserve on course to cut rates again, with the dollar holding near a two-week high.
European shares (.STOXX), opens new tab fell 0.2%, easing further away from a seven-week high touched on Monday, weighed down by a series of downbeat corporate results.
Investors were cautious because – with an 85% chance of a U.S. rate cut next week priced in and with Wall Street indexes around record highs – potential for disappointment exists.
The median forecast of economists polled by Reuters is for headline and core U.S. consumer prices increasing 0.3% month on month for November. No forecasts were above 0.3%, which analysts say leaves markets vulnerable to a surprise.
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