European equities edged higher on Wednesday as investors awaited key U.S. inflation data due later in the session, which may influence the Federal Reserve's interest-rate trajectory. The Euro Stoxx 50, the region's blue-chip benchmark, rose 0.2% to 6,468.66 points by midday, while the Swiss SMI gained 0.5% to 14,594.57. The UK's FTSE 100 held steady at 10,884.48.
Oil prices declined further after Iran and Oman announced talks to establish a temporary joint shipping corridor, aiming to expand crude transport through the Strait of Hormuz. The proposed corridor could ease supply concerns and reduce regional transit risks, analysts noted. Brent crude futures fell below $80 per barrel, easing inflationary pressures and reducing pressure on central banks to maintain restrictive monetary policies.
Chip stocks showed mixed performance ahead of Nvidia's after-hours earnings release. The Euro Stoxx 50's tech segment saw ASML decline 0.4%, while Infineon advanced 0.8%. In Paris, STMicro gained 0.8%. Nvidia, a bellwether for artificial intelligence demand, faces high expectations following its strong prior performance, according to Andreas Lipkow of CMC Markets.
Travel and aviation shares benefited from lower oil prices, with the sector index up roughly 1%. Oil-related equities lagged, declining 1.3%, reflecting the broader commodity sector's retreat.
