Europe open: Shares edge ahead as investors eye central bank moves

European shares inched higher on Wednesday ahead of key central bank meetings and despite Britain becoming the latest country to report a spike in inflation.

The pan-European Stoxx 600 was up 0.45%. Stock markets across Asia were lower overnight as China's weaker-than-expected retail sales in November dented sentiment.

The US Federal Reserve, European Central Bank and Bank of England are all holding rate meetings this week.

London stocks edged lower in early trade on Wednesday after data showed that UK inflation surged in November to its highest level in more than a decade.

Annual inflation hit 5.1% in November. The consumer price index, which increased from 4.2% in October, was above consensus expectations of 4.8% and the Bank of England’s forecast for 4.5%. It was the highest annual rate since September 2011.

In equity news, sales and marketing firm DCC gained after announcing it had bought US sales and distribution business Almo for around $610.0m, marking its largest acquisition to date.

Generali gained as the Italian insurer pledged to return up to €6.1bn in dividends and buybacks to shareholders.

Shares in IAG fell after saying the British Airways owner said it was in advanced talks to cancel its acquisition of rival Air Europa from Spanish company Globalia.

Miners fell, with Rio Tinto, Anglo American, Antofagasta, Glencore and BHP all lower as metals prices retreated.

Cineworld tumbled more than 30% after it was ordered to pay Canadian theatre company Cineplex CAD1.28bn (£751.57m) in damages after pulling out of a planned takeover.

Electricals retailer Currys slid after it reported higher first-half profits but warned its market has been softer over recent weeks and it could face more headwinds from the Omicron Covid variant.