European stocks set for muted open as traders track earnings, inflation data

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European markets are set for a cautious open as traders monitor corporate earnings and developments in the Middle East, along with key inflation data.

closed Tuesday's session fractionally lower after U.S. retail sales came in higher than expected, reigniting concerns that the Federal Reserve could keep interest rates higher for longer, or possibly even hike further.inched lower in early premarket trade on Wednesday, coming off a muted previous session as Wall Street assessed a host of major earnings reports alongside the bumper September retail sales figure.Economic data will also be in focus, with inflation data from the U.K.

Ahead of the upcoming earnings season, Deutsche Bank has cut price targets on nearly 30 European stocks this week and upgraded just one to"buy." The biggest cut to price targets was for an energy company's stock. Deutsche Bank analysts lowered their 12-month share price forecast by 36% on Oct. 16. The stock has nearly halved in value this year.

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