A look at the day ahead in European and global markets from Tom

Westbrook

In a grand ceremony marking the opening of the new

parliament replete with gold and splendour, Britain's King

Charles will read out the agenda of Keir Starmer's Labour

government, aimed at rebuilding an economy roiled by political

turmoil.

Markets' main focus, however, will be on whether Britain's

inflation sticks to the global script.

U.S. consumer prices fell for the first time in four years

in June, data showed last week, and month-on-month Canadian

prices followed suit overnight.

Earlier, in the Asia, New Zealand inflation slowed more than

expected - however it contained some domestic pressure under the

hood that may prove cautionary.

Britain's sticky services inflation was running at 5.7%

year-on-year in May and is tipped at an uncomfortable 5.6% for

June.

Sterling was steady at $1.2978, just shy of a

one-year high and rates markets have priced an even chance the

Bank of England will begin cutting interest rates in August.

New Zealand's dollar rose 0.5% and two-year swaps

bucked the global rally to rise three basis points

on the stickiness of domestically driven inflation with

increases in rent and construction costs.

Gold scaled record highs in Asia on firmer

expectations of interest rate cuts, while Taiwan stocks were

wobbled by Donald Trump equivocating on the United States'

commitment to the island in remarks to Bloomberg Businessweek.

"Taiwan took our chip business from us," Trump said.

"They're immensely wealthy... I don't think we're any different

from an insurance policy. Why? Why are we doing this?"

Shares in Taiwanese chipmaker TSMC were down 1.4%.

Earnings due later on Wednesday at Dutch semiconductor

equipment supplier ASML are expected to show new

orders booming.

Key developments that could influence markets on Wednesday:

* Economics: British CPI, euro zone final CPI, U.S. housing

starts

* Earnings: ASML, U.S. Bancorp, United Airlines