(fxcue news) - Indian shares are likely to open on a muted note Wednesday as investors await domestic and U.S. inflation prints as well as the outcome of a key economic policy meeting in China due this week that is expected to outline policies and growth targets for the upcoming year. Benchmark indexes Sensex and Nifty fluctuated before ending narrowly mixed on Tuesday. The rupee settled on a flat note near record lows at 84.85 against U.S. dollar as change of guard at the Reserve Bank of India raised expectations of a shift in the central bank's monetary policy. Market participants now expect a rate cut in the upcoming monetary policy in February. The dollar was marginally lower in Asian trade as traders closely monitored escalating violence in Syria and awaited key U.S. inflation readings this week that could influence the Fed's rate trajectory. Gold traded higher above $2,700 per ounce, climbing to a two-week high amid geopolitical unrest and expectations of another Federal Reserve rate cut next week. The Israeli military announced on Tuesday that it conducted approximately 480 airstrikes over the past 48 hours, targeting key military installations across Syria in the wake of President Bashar al-Assad's government collapse. Oil edged higher ahead of a monthly report from OPEC that will provide a snapshot on the market. Traders were also reacting to media reports suggesting that the U.S. is considering stricter sanctions on Russia's oil trade to curb its war efforts, with potential measures targeting specific exports. U.S. stocks ended lower overnight, failing to sustain early gains as investors awaited the all-important CPI report that could reflect another increase in the annualized headline figure. The Dow dipped 0.4 percent while the tech-heavy Nasdaq Composite and the S&P 500 both slipped around 0.3 percent. European stocks closed lower on Tuesday to snap an eight-session losing streak as weaker-than-expected Chinese trade data signaled growing trade challenges. The pan European STOXX 600 gave up half a percent. The German DAX finished marginally lower, France's CAC 40 tumbled 1.1 percent and the U.K.'s FTSE 100 shed 0.9 percent.