Investors are anticipating the publication of significant inflation data on both sides of the Atlantic. European stock markets begin moderately higher on Thursday.

Investors are anticipating the publication of significant inflation data on both sides of the Atlantic as central bank policy meetings approach, and European stock markets begin moderately higher on Thursday.

As August draws to a close, investors have had a challenging month as the eurozone battled a more severe than anticipated decline in economic growth.

As the upcoming European Central Bank policy-setting meeting approaches, investors will be paying close attention to the publication of preliminary consumer inflation statistics for the eurozone for August.

Inflation appears to be dropping down at a frustratingly slow rate, according to data released on Wednesday from Germany and Spain. If this trend holds true across the eurozone, the European Central Bank may be forced to increase interest rates again in September.

Compared to July's 5.3% annual growth rate, the eurozone CPI is forecast to increase by 5.1% in August. However, Wednesday's figures suggested that there may be room for improvement.

At the press conference that followed the ECB's most recent meeting, President Christine Lagarde made a suggestion that the central bank of the area might halt its rate-hiking cycle in September.

Softer economic indicators released this week in the US have increased market predictions that the Federal Reserve would stop raising interest rates in September, at least temporarily.

Later in the day, the core PCE data for July is likely to show a marginal 0.2% gain over the prior month, and forecasts have annual core numbers at 4.2%, up from 4.1%.

As traders processed the contradicting effects of poor economic activity statistics from China, the world's largest crude importer, and a far larger-than-expected decrease in U.S. crude stocks, oil prices remained relatively flat on Thursday.

As refiners increased production before the Labour Day weekend, which often marks the height of U.S. summer demand, U.S. oil stockpiles decreased by 10.6 million barrels last week, according to the Energy Information Administration, far more than the 3.3 million barrels anticipated.

(Sources: investing.com, reuters.com)