Il Nuovo Postiglione - Stocks lacklustre as inflation data weighs on sentiment

Oil prices edged higher after falling the previous day, remaining stubbornly elevated and fuelling global inflation and multi-decade highs in bond yields.

European stocks were lacklustre, with Paris and Frankfurt both lower after inflation data from several eurozone economies showed prices surging on higher energy and fuel costs.

France's annual inflation rate hit its highest level since February 2024, while in Italy, inflation hit 4.2 percent, nearly a full percentage point above the rate recorded in August.

London's FTSE 100 ticked up after data showed the UK economy grew more than initially estimated in the second quarter.

Asian equities fared better, with Tokyo piling on almost two percent.

Shanghai and Hong Kong were given a little support from news of a fresh stimulus package out of China, as well as data showing the country's factory activity grew this month for the first time since June.

London-listed miners were also boosted by the manufacturing data, as China is a huge consumer of industrial metals.

Investors are now awaiting Wednesday's release of US personal consumption expenditure data for October, with the Federal Reserve's preferred gauge of inflation likely to play a key role in next month's policy decision.

Officials are focused on bringing down prices and an above-forecast reading could strengthen the case for a second successive rate hike.

News that Saudi Arabia had restored about half the capacity of its East-West pipeline -- after it was closed this month following drone attacks -- helped boost sentiment during Asia trading hours, while the Trump administration also ordered the release of more oil from US emergency reserves.

The Saudi East-West pipeline has been a key alternative route for oil shipments from the kingdom while tanker traffic through the Strait of Hormuz remains below pre-war levels due to the risk of Iranian attacks.

"This helped to dial down some of the nervousness about inflation and saw government bond yields, which had been testing new multi-decade highs, ease back," said Dan Coatsworth, head of markets at AJ Bell.

However, Deutsche Bank's Jim Reid noted that investors were "still pricing in a lengthier period of disruption, even as increased oil flows out of the Gulf have eased the near-term pressure."

- Key figures at around 1115 GMT -

London - FTSE 100: UP 0.1 percent at 10,644.65 points

Paris - CAC 40: DOWN 0.6 percent at 7,988.16

Frankfurt - DAX: DOWN 0.4 percent at 25,293.88

Tokyo - Nikkei 225: UP 1.9 percent at 66,753.72 (close)

Hong Kong - Hang Seng Index: UP 0.4 percent at 24,613.27 (close)

Shanghai - Composite: UP 0.3 percent at 3,842.19 (close)

New York - Dow: DOWN 0.3 percent at 51,349.92 (close)

West Texas Intermediate: UP 1.5 percent at $90.72 per barrel

Brent North Sea Crude: UP 1.0 percent at $103.58 per barrel

Dollar/yen: DOWN at 157.07 yen from 157.32 yen on Tuesday

Euro/dollar: UP at $1.1357 from $1.1339

Pound/dollar: UP at $1.3291 from $1.3204

Euro/pound: DOWN at 85.45 pence from 86.00 pence

I.Altadonna--INP