Futures edge higher ahead of US inflation data

The European stock market is expected to edge higher at the open on Tuesday with investors looking ahead to the release of U.S. inflation data later in the session and what it would mean for interest rate expectations.

The global stock market remains in a holding pattern ahead of the release of the U.S. consumer price index for November, which is expected to show a moderation in the annual pace of growth, from 7.7% to 7.3% in November, as the core inflation rate remains steady at 0.3% month-on-month.

Investors generally remain very wary about the risks of further increases in borrowing costs hurting economies, and signs of inflation remaining at elevated levels could prevent the Federal Reserve from beginning to slow its aggressive rate rises when it concludes its latest policy-setting meeting on Wednesday.

According to Eurostat, the number of people filing claims in the UK increased by 30,500 in November, while the country's unemployment rate rose to 3.7%, up from 3.6% in October, as the country's labour market began to feel the effects of the slowdown in consumer spending.

For November, the headline German consumer price index figure came in lower than the previous month's reading of 10.4%, with a final reading of 10.0%.

In addition to these two events, investors will also be keeping an eye on the German ZEW economic sentiment survey, which is expected to show a slight improvement in the country's largest economy ahead of the European Central Bank's meeting on Thursday.

As the Keystone pipeline between the U.S. and Canada remains closed, crude oil prices have extended some of the gains they made in the previous session amid continued supply concerns.

Despite a massive leak discovered in Kansas, the Keystone pipeline has remained closed since it was found on Dec. 7, preventing the flow of half a million barrels of Canadian crude per day into the United States, the world's largest consumer of crude oil.

A pipeline closure will likely be reflected in the latest U.S. crude inventories, the latest numbers from the industry body American Petroleum Institute due later Tuesday before the official data from the Energy Information Administration is released on Wednesday.