New York - Wall Street's major indexes opened higher on Wednesday, buoyed by November's consumer price index (CPI) report, which aligned with analysts' expectations. The CPI rose to 2.7% year-over-year, slightly up from October's 2.6%.

Market analysts believe the Federal Reserve will likely maintain its rate-cutting path, with a quarter-point reduction expected at the upcoming meeting. The probability of a rate cut has surged to 98% following the CPI data.

However, as inflation shows signs of ticking up and concerns linger about potential inflationary pressures from the incoming administration's policies, analysts predict a pause in the Fed's rate-cutting cycle. The central bank is expected to closely monitor job market data and inflation trends before considering further rate reductions.

In Europe, stocks in Paris and Frankfurt advanced ahead of the European Central Bank's interest rate decision on Thursday. Analysts anticipate another rate cut to stimulate economic growth in the eurozone.

Political developments in France, specifically the appointment of a new prime minister, are also capturing investor attention.

On the corporate front, German retailer Zalando's shares declined over 4% after announcing the acquisition of domestic rival About You for approximately €1.1 billion. Additionally, shares in Zara owner Inditex fell 6% as its record quarterly profit fell short of market expectations.

In Asia, Shanghai stocks rose, while Hong Kong's market ended lower after an initial rally. Investors are closely monitoring China for potential additional economic stimulus measures as policymakers gather for a conference to outline next year's agenda.

China's recent policy shift towards a more active fiscal policy and a relaxed monetary policy has fueled hopes for further rate cuts and increased lending. However, concerns persist about potential trade tensions with the incoming US administration, which could impact China's economic outlook.