FX.co ★ European Shares Seen Little Changed; UK Inflation Data Eyed

European stocks are expected to open flat on Wednesday, with trading volumes anticipated to be thin due to the U.S. holiday observance of Juneteenth.

In Asia, markets presented a mixed performance, despite another record-breaking session on Wall Street the previous night.

Gold prices remained steady as the dollar faltered, reflecting lackluster U.S. economic activity in the second quarter.

Fed officials reiterated their commitment to data-driven decision-making on Tuesday. New York Federal Reserve President John Williams indicated that interest rates would gradually decline as inflation eases. Meanwhile, Boston Federal Reserve President Susan Collins advised caution regarding recent inflation data, stressing the need for patience with rate cuts. Fed Governor Adriana Kugler offered an optimistic economic outlook, noting recent inflation data showed progress. Chicago Fed President Austan Goolsbee praised the latest inflation figures as "excellent," despite previous months' less favorable numbers. Dallas Fed President Lorie Logan emphasized the Fed's advantageous position with current rates, allowing for patience.

Oil prices experienced a marginal increase in Asian trading, continuing momentum from a seven-week high on Tuesday due to rising tensions in Europe and the Middle East. A Ukrainian drone attack set several oil storage tanks ablaze near Azov in southern Russia, threatening global oil supply and raising the risk premium on crude futures. Additionally, Israeli Foreign Minister Israel Katz warned that in the event of "total war," the Iran-backed Hezbollah movement would be destroyed.

On the economic front, U.K. consumer and producer price data is due ahead of Thursday's Bank of England (BoE) policy meeting. Consumer price inflation in the U.K. is projected at 2.0 percent, down from 2.3 percent in April. Output prices are expected to rise by 0.1 percent month-over-month, while input prices are forecast to drop by 0.2 percent. The BoE is anticipated to maintain interest rates at a 16-year high of 5.25 percent, as British voters prepare for upcoming elections in two weeks.

In the U.S., stocks rose overnight with investors evaluating mixed economic data and comments from various Fed officials underscoring the need for more proof of cooling inflation before easing rates. May's industrial production and manufacturing output exceeded expectations, while retail sales barely increased and April's data saw significant downward revision. This sent Treasury yields lower and increased investor bets on two interest rate hikes this year.

The S&P 500 edged up by 0.3 percent, the tech-centric Nasdaq Composite closed marginally higher, achieving new record highs, and the Dow advanced by 0.2 percent.

European stocks extended their gains for the second consecutive day on Tuesday, spurred by declining government bond yields amid easing political risk concerns in France. The pan-European STOXX 600 rose by 0.7 percent, the German DAX increased by 0.4 percent, France's CAC 40 added 0.8 percent, and the U.K.'s FTSE 100 advanced by 0.6 percent.