Volkswacht Bodensee - Stock markets gain before US inflation data

Following days of attention on US President Donald Trump's tariffs, traders switch focus to the latest Consumer Price Index (CPI) which could alter Federal Reserve thinking on the outlook for interest rates.

"Bar a major surprise in today's price data, one month's worth of data is unlikely to sway the Federal Reserve," noted Kathleen Brooks, research director at XTB.

"However, CPI is a major market release, and it can have a big impact on financial markets, at least in the short term."

Fed boss Jerome Powell on Tuesday reiterated that the US central bank was in no hurry to cut interest rates further.

It comes as analysts warn that Trump's tariffs -- and plans to slash taxes, regulations and immigration -- risked reigniting prices.

"The impact could be higher inflation, higher (US) interest rates to combat that inflation, or higher taxes for households," said Hetal Mehta, head of economic research at St James's Place.

Wall Street ended Tuesday on a mostly positive note, despite tech stocks dragging the Nasdaq into the red.

Hong Kong led gains across most Asian stocks markets Wednesday thanks to another rally by its tech firms.

In Europe, London and Frankfurt hit fresh record highs, with support coming from cuts to interest rates in Britain and the eurozone, as well as thanks to positive company earnings.

Shares in Dutch brewer Heineken fizzed Wednesday as traders cheered better-than-expected beer sales.

The stock surged almost 13 percent, making it the biggest gainer on the Amsterdam market, which was up slightly overall approaching midday.

- Key figures around 1030 GMT -

London - FTSE 100: UP 0.1 percent at 8,782.94 points

Paris - CAC 40: UP 0.2 percent at 8,047.61

Frankfurt - DAX: UP 0.3 percent at 22,104.52

Tokyo - Nikkei 225: UP 0.4 percent at 38,963.70 (close)

Hong Kong - Hang Seng Index: UP 2.6 percent at 21,857.92 (close)

Shanghai - Composite: UP 0.9 percent at 3,346.39 (close)

New York - Dow: UP 0.3 percent at 44,593.65 (close)

Euro/dollar: UP at $1.0373 from $1.0360 on Tuesday

Pound/dollar: DOWN at $1.2441 from $1.2446

Dollar/yen: UP at 153.68 yen from 152.45 yen

Euro/pound: UP at 83.38 pence from 83.24 pence

West Texas Intermediate: DOWN 1.2 percent at $72.47 per barrel

Brent North Sea Crude: DOWN 1.0 percent at $76.24 per barrel

T.Zimmermann--VB