European equities edged higher on Wednesday as oil prices fell for a third consecutive session, while markets awaited Nvidia’s earnings and a key U.S. inflation report for further direction.
The STOXX 600 index rose 0.1% to 657.34 by 0703 GMT, with gains led by the basic resources sector, which advanced 0.9%. The energy index was the weakest performer, declining 1.1% as Brent crude futures dropped more than 2% to around $86 a barrel.
The decline in oil prices and bond yields followed reports that Iran had resumed talks with Oman regarding the management of the Strait of Hormuz, easing concerns over a prolonged disruption to global crude supply. The Strait of Hormuz has been a focal point amid heightened geopolitical tensions in the region.
Technology shares lagged, falling 0.2% ahead of Nvidia’s second-quarter earnings release, expected later in the day. The chipmaker remains a bellwether for AI-driven spending trends, and its results are seen as a critical test of whether current market valuations are justified.
Investors also kept a close eye on U.S. economic data, with a key inflation report due later on Wednesday. The report is expected to provide further clues on the Federal Reserve’s interest rate trajectory, which has been a major driver of market sentiment in recent months.
European shares have shown resilience in recent sessions, but the near-term outlook remains contingent on developments in both energy markets and U.S. policy signals.
