Investors are focusing on inflation data to find clues for the Fed's interest rate cut, while European stock markets are slightly up

Zhitong Finance and Economics APP noticed that the European stock market edged up slightly as investors awaited sensitive U.S. inflation data to be released later on Wednesday to look for clues about recent monetary policy moves by the Federal Reserve. As of the time of publication, the Stoxx Europe 600 index rose by 0.2%, boosted by retailers, after Zara's parent company, Inditex SA, reported a slight increase in early third-quarter sales. Bank stocks also strengthened, as Italy's UniCredit acquired shares of Germany's Commerzbank from the German government. Rentokil was one of the worst-performing companies, with its stock price plummeting by 20% after unexpectedly lowering growth expectations for North America. Concerns about global economic growth weighing on stocks related to economic cycles and commodities such as oil, European benchmark indices fell this month after rebounding in August. The European Central Bank is expected to cut interest rates at Thursday's meeting, marking the second rate cut in this cycle, as the region's economy struggles to maintain momentum. IG's Chief Market Analyst in Paris, Alexandre Baradez, stated that he was not surprised by the slight rise in European stocks and the decline in U.S. stock index futures, as there were concerns about the Fed waiting too long to ease policy. S&P 500 index futures fell by 0.4%, and the Nasdaq 100 index also opened with a similar decline. Baradez believes, "Looking at the situation in major markets, Harris winning this debate makes sense, especially with the support of Taylor Swift." Democratic candidate Harris and Republican candidate Trump clashed in their first debate on Tuesday, with former President Harris often defending herself on issues such as abortion rights, the January 6th insurrection, and foreign policy. Baradez mentioned that investors expect the Trump administration to lean towards exacerbating inflation through tax cuts and tariffs on imported goods, while a Harris presidency would be more favorable for traditional U.S. allies like the European Union