European markets hesitated at the opening bell on Wednesday, against a backdrop of caution and pressure from the luxury goods sector, down after LVMH's results.

In Paris, the CAC 40 was down 0.56% at 7,122.11 points around 07:35 GMT. In Frankfurt, the Dax was flat, while London's FTSE was down 0.13%.

The pan-European FTSEurofirst 300 index gave up 0.13%, the EuroStoxx 50 0.35% and the Stoxx 600 was stable.

Futures on New York indices suggest a hesitant opening on Wall Street, with the Dow Jones treading water, compared with a rise of 0.14% for the Standard & Poor's 500 and 0.23% for the Nasdaq.

Despite the Federal Reserve's accommodative tone, caution continues to dominate the markets, as investors position themselves ahead of Wednesday's release of crucial US producer price data, and the minutes of the Fed's latest monetary policy meeting.

US inflation figures will be released on Thursday, while the earnings season kicks off on Friday.

Upward price surprises could put the Fed in a bad position and make it reconsider its dovish stance of recent days.

European equities are also under pressure from LVMH , whose quarterly figures disappointed market expectations.

The stock is down 6.07%, heading for its worst session since March 2020, and dragging the entire luxury goods sector down with it.

Kering and Hermès retreated by 1.51% and 2.08% respectively, while Burberry gave up 3.68%, and Switzerland's Richemont and Swatch dropped 4.17% and 2.48% respectively. (Written by Corentin Chappron, edited by Kate Entringer)