Stock markets surged on Wednesday, buoyed by robust US bank earnings and encouraging inflation data from the United States and Britain. Fresh data published earlier Wednesday showed headline inflation in the Untied States accelerated in the 12 months to December,

European and U.S. futures pointed to a modest bounce on Tuesday, though spiking bond yields and a strong dollar have investors wary of taking too many risks ahead of U.S. inflation data and the start of Donald Trump's second term as U.

US stocks climbed on Wednesday after inflation data boosted investors’ hopes for interest rate cut by the Federal Reserve this year. Investors also cheered a strong set of quarterly results from the biggest US banks.

European stock markets rose Wednesday as traders focused on inflation data in Britain and the United States. In Asia, Tokyo's stock market ended down, though games giant Nintendo piled on more than two percent and briefly hit a record high as traders anticipate it will soon release its much-anticipated Switch 2 console.