European stocks rise as investors bet inflation has reached peak

European stocks and US futures edged higher on Wednesday, with investors betting that cooling inflation would allow central banks to pause their rate increases earlier than previously thought.

The regional Stoxx Europe 600 added 0.4 per cent, while Germany’s Dax added 0.2 per cent, erasing earlier losses. London’s FTSE 100 traded in a tight range, slightly below a record high, as UK inflation slowed for the second month in a row, declining to 10.5 per cent in December from an 11.1 per cent peak in October. Sterling gained 0.5 per cent against the dollar to $1.235.