(Reuters) – European shares opened higher on Wednesday due to broad-based gains as bond yields took a breather ahead of a crucial inflation reading in the United States, while British bourses outperformed following a soft local inflation reading.
The pan-European STOXX 600 was up 0.3% as of 0809 GMT, on track to snap a three-day losing streak.
UK’s more domestically focussed midcap index jumped 1.4% after data showed British inflation unexpectedly slowed to an annual rate of 2.5% in December from 2.6% in November, with core measures of inflation falling more sharply.
The blue-chip FTSE 100 was last up 0.7%, outpacing European peers.
Yields on long-dated European government bonds eased a touch, with the yield on the region’s benchmark 10-year bond at 2.602%, on track to snap a 10-day rising streak. [GVD/EUR]
Rate-sensitive real estate was up 1.6%, while utilities, often traded as a bond proxy, added 1%.
Later in the day, eyes would be on the December U.S. consumer prices reading, a crucial metric for gauging the Federal Reserve’s rate path as markets remain wary of inflationary risks.