European markets cautious as investors gear up for U.S. inflation data; Credit Suisse down 5%

LONDON — European stocks were muted on Wednesday as investors prepare for the latest reading of U.S. inflation on Friday.

The pan-European Stoxx 600 hovered around the flatline in early trade, with retail stocks adding 1.8% while basic resources shed 0.7%.

Credit Suisse shares fell more than 5% after the embattled lender warned that it is likely to post a group-wide loss for the second quarter.

At the top of the European blue chip index, Kindred Group jumped more than 11% after securing a gambling license in the Netherlands.

International markets have pulled back this week amid nervousness over forthcoming U.S. data releases this week, including the latest inflation reading on Friday.

May’s consumer price index in the U.S. is expected to be just slightly cooler than April, and some economists are expecting it could confirm that inflation has peaked.

The University of Michigan consumer sentiment index, also due Friday, will also be closely watched by investors.

Shares in Asia-Pacific rose in Wednesday morning trade as investors look ahead to the Reserve Bank of India’s latest interest rate decision expected later today. Meanwhile, U.S. stock futures fell marginally in overnight trading after two consecutive days of gains on Wall Street.

Earnings came from retailer Inditex in Europe.