European Markets Stumble Amid U.S. Inflation Anticipation and Chinese Stimulus Hopes

European shares struggled to follow U.S. and China's gains due to U.S. inflation data concerns. Market focus shifted to China, anticipating fiscal stimulus. French budget plans in focus amid bond spreads. Chinese markets await finance ministry's stimulus details. Oil prices rose due to Middle East tensions and storm impacts.

On Thursday, European shares fell short of matching gains seen in the U.S. and China as investors cautiously awaited U.S. inflation data. The Stoxx 600, a key European index, showed modest losses, while German government bond yields reached a five-week high of 2.27%.

In the U.S., the consumer price index (CPI) is set to be released, with experts weighing potential Federal Reserve rate cuts. Societe Generale's Kenneth Broux noted that recent U.S. economic growth might stall disinflation, influencing bond markets.

Meanwhile, China's market focus turned to anticipated fiscal stimulus. Mainland shares gained amid stimulus measures, though details remained scarce. Oil prices surged as Middle East tensions and demand spikes from a storm hitting Florida influenced the market.

(With inputs from agencies.)