(fxcue news) - Inflation data from the U.K. for the month of October due on Wednesday morning is expected to influence European market sentiment. The easing geopolitical tensions is likely to support sentiment whereas the People's Bank of China's decision to keep the rates unchanged is bound to pose a challenge. Annual inflation rate in the U.K. which had fallen to 1.7 percent in September from 2.2 percent in July and August is expected to again rise to 2.2 percent in October. The core component is seen edging down to 3.1 percent from 3.2 percent previously. The month-on-month inflation which was flat in September is seen rising to 0.5 percent whereas its core component is seen rising to 0.3 percent from 0.1 percent. Any negative surprise on the inflation front is likely to impact the monetary easing plans of the Bank of England as well as market sentiment. Wall Street had closed on a mixed note on Tuesday amidst anticipation ahead of key earnings updates as well as geopolitical concerns. The Nasdaq Composite added 1.04 percent to close trading at 18,987.47 whereas the Dow Jones Industrial Average slipped 0.28 percent to finish trading at 43,268.94. An overwhelmingly negative sentiment prevailed in the European bourses on Tuesday as markets reacted to the spike in tensions between Russia and Ukraine. The mixed earnings updates also weighed on sentiment. Switzerland's SMI dropped 0.94 percent followed by the pan-European Stoxx-50 that erased 0.83 percent. France's CAC 40 and Germany's DAX, both declined 0.67 percent. U.K.'s FTSE 100 slipped 0.13 percent. Current indications from the European stock futures indicate a positive sentiment. The DAX Futures (Dec) has gained 0.21 percent. The CAC 40 Futures (Dec) has added 0.34 percent. The FTSE 100 Futures (Dec) has also edged up 0.02 percent. The pan-European Stoxx 50 Futures (Dec) has increased 0.31 percent. The SMI Futures (Dec) finished Tuesday's trading on a flat note. American stock futures are trading positive. The US 30 (DJIA) is trading 0.17 percent higher, whereas the US500 (S&P 500) is trading 0.12 percent above the flatline. Asian stock markets are trading on a mixed note. South Korea's KOSPI has rallied 0.53 percent. China's Shanghai Composite has added 0.34 percent. Australia's S&P ASX 200 has slipped 0.57 percent whereas DJ New Zealand has declined 0.72 percent. Japan's Nikkei 225 benchmark has lost 0.24 percent. Hong Kong's Hang Seng has also lost 0.22 percent. The Dollar Index, a measure of the U.S. dollar's strength relative to six currencies, has edged up to 106.27 on Wednesday. The index had suffered losses on Monday and Tuesday after a massive surge the week earlier. The EUR/USD pair has edged down 0.07 percent to 1.0588 whereas the GBP/USD pair has edged up 0.03 percent to trade at 1.2686. Supported by safe haven demand, gold added to gains made on Monday and Tuesday. Gold Futures for December settlement is trading at $2,641.10, which is 0.38 percent higher than the previous close of $2,631.00. Crude oil prices are trading below the flatline amidst easing geopolitical concerns as well as larger-than-expected crude oil inventories in the U.S. Brent Crude Futures for January settlement edged down 0.12 percent to trade at $73.22 whereas WTI Crude Futures for January settlement slipped 0.06 percent to trade at $69.20. In addition to the inflation data for October from the U.K., markets would also be looking forward to the producer price inflation data for October from Germany as well as a speech by European Central Bank President Christine Lagarde. In addition to the earnings update from NVIDIA Corp which the markets are keenly anticipating, financial results are inter alia due from The Sage Group, Severn Trent, British Land Company and Molten Ventures.