European markets closed higher as investors geared up for more inflation data this week, with U.S. consumer price data for December due Thursday.
The pan-European Stoxx 600 index provisionally closed up 0.4%, with most sectors and major bourses posting gains. Retail stocks saw the largest uptick, up 2%, while insurance bucked the trend to end the session down 1.1%.
European markets
U.S. Federal Reserve Chairman Jerome Powell on Tuesday emphasized the need for the central bank to be free of political influence while it tackles persistently high inflation.
In a speech delivered to Sweden's Riksbank, Powell noted that stabilizing prices requires making tough decisions that can be politically unpopular. The speech did not contain any direct clues about where policy is headed for a Fed that raised interest rates seven times in 2022, and has indicated that more increases are likely this year.
U.S. stock futures were higher on Wednesday as the Nasdaq looked to extend a three-day winning streak.
Asia-Pacific shares traded higher as investors looked ahead to U.S. consumer price index data.