(Reuters) – European shares opened higher on Wednesday on broad gains as bond yields took a breather ahead of a key inflation reading in the United States, while British bourses outperformed after a soft local inflation reading.
The pan-European was up 0.3% as of 0809 GMT, on course to snap a three-day losing streak.
The more domestically focused UK mid-cap index jumped 1.4% after data showed UK inflation unexpectedly slowed to an annual rate of 2.5% in December from 2.6% in November, with core inflation measures fell more sharply.
The blue-chip was last up 0.7%, outperforming European peers.
Long-term European government bond yields eased slightly, with the region’s benchmark yielding 2.602%, on course to snap a 10-day rally. [GVD/EUR]
Exchange-sensitive real estate rose 1.6%, while utilities, which are often traded as substitutes for bonds, added 1%.
Later in the day, eyes will be on the US consumer price reading for December, a key metric to gauge the Federal Reserve’s stance as markets remain wary of inflation risks.
