European stocks tread water ahead of US inflation data

Wed, August 12, 2026 at 7:35 AM UTC

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Aug 12 (Reuters) - European shares were largely subdued on Wednesday as investors assessed corporate earnings and fresh geopolitical tensions ahead of crucial U.S. inflation data.

The pan-European STOXX 600 was little changed at 661.26 points, as of 0715 GMT, but hovered near recent record highs.

Brent crude futures climbed 0.8% to $89.57 a barrel after fresh attacks on shipping in the Middle East and fading hopes for an end to the Iran conflict. [O/R]

The United States and Yemen's Iran-aligned Houthis reported separate attacks on shipping, as hopes for a resolution to the Iran conflict faded. Tehran said the Strait of Hormuz would remain closed unless Washington accepted Iran's conditions.

The six-month-old conflict showed no signs of ending soon, despite repeated claims by U.S. President Donald Trump that a deal was imminent. Markets have swung between optimism and disappointment since the war began, as investors tried to gauge the risk of a broader disruption to energy supplies and global trade.

Elsewhere, North Korea fired another ballistic missile into the ocean, while Taiwan protested China's planned naval drills off the island's east coast, adding to geopolitical concerns.

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Europe's energy sector led sectoral gains, rising 0.7%, while the automobiles and parts sub-index was the biggest decliner in the benchmark index, down 0.8%.

U.S. CPI data, due later in the day, will not reflect the latest rise in energy costs, but could still help shape expectations for the Federal Reserve's meeting next month. Markets are pricing an even chance of a rate hike, according to CME's FedWatch tool.

Earnings also remained in focus.

TKMS jumped 9.2% after the warship manufacturer raised its outlook for the second time in six months.

Shares of Europe's largest travel company TUI fell 2.8% after third-quarter operating profit missed expectations, pressured by weaker bookings and higher jet fuel costs linked to Middle East tensions.

German potash and salt miner K+S gained 2.2% after raising annual outlook for a second time this year.

(Reporting by Ragini Mathur in Bengaluru; Editing by Sherry Jacob-Phillips)

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Source: “AOL Money”