European stocks fell on Wednesday, while U.S. stock futures rose as traders weighed the latest inflation data release and prepared for the start of the U.S. earnings season.

The regional Stoxx Europe 600 edged down 0.3%, Germany’s Dax dipped 0.7% and France’s Cac dipped 0.4%. London’s FTSE 100 edged up 0.1%.

Futures contracts tracking the U.S. benchmark S&P 500 and Nasdaq 100 rose 0.5% and 0.6%, respectively, on Wednesday.

The moves followed volatility on Wall Street in the previous session. The S&P and the tech-heavy Nasdaq Composite initially rose after inflation data released in March showed U.S. consumer prices rose 8.5% from a year earlier, slightly above analysts’ expectations. However, so-called core inflation, which strips out volatile food and energy prices, came in below expectations.

U.S. stock market followed Ended the day with a lower priceafter oil prices surged more than 6%, rekindling inflation concerns.

“Big news for March [inflation] Andrew Hunter, senior U.S. economist at Capital Economics, said the report said core price pressures finally appeared to be easing, adding that cargo shortages and port congestion were showing signs of easing.

He added that energy prices, the main driver of inflation, are expected to moderate for the rest of the year. But he said the Fed was unlikely to deviate from its plan to raise rates by 0.5 percentage points, which was broadly behind at its May meeting.

“Fed officials have been slow to realize that the initial spike wasn’t temporary and are now a little too pessimistic about how quickly inflation will come back down,” Hunter said.

JPMorgan Chase on Wednesday as U.S. earnings season looms Reported profit down 42% year over yearwhile setting aside nearly $1 billion in loan-loss provisions amid rising inflation and the Ukrainian war.

In the government bond market, the yield on the 10-year U.S. Treasury note, which represents global borrowing costs, was little changed at 2.73%, up from about 1.6% at the start of the year. The two-year Treasury yield, which is closely related to interest rate expectations, was also steady at 2.39%.

The 10-year German Bund yield, which underpins European borrowing costs, was flat at 0.8 percent, near its highest level since 2015.

Data on Wednesday showed that UK inflation It rose to a 30-year high last month, led by rising fuel costs. Consumer prices rose 7% in March from a year earlier, up from 6.2% in the previous month. Economists polled by Reuters had expected prices to rise 6.7%.

Martin Beck, chief economic adviser at EY Item Club, predicts prices will peak at 8.5% in April before cooling later in the year as energy prices and supply chain bottlenecks ease. “After some high inflation readings this year, prices are likely to rise well below the 2% target set by the Bank of England in late 2023 and early 2024,” he said in a note.

Oil prices extended gains on Wednesday, with international benchmark Brent crude rising 1.8% to $106.50 a barrel. U.S. oil benchmark West Texas Intermediate rose 1.9 percent to $102.49 a barrel.

In Asia, Hong Kong’s Hang Seng rose 0.3% and China’s CSI 300 fell 1%. Japan’s Topix rose 1.4% and South Korea’s Kospi rose 1.9%.