Global stocks edged up on Wednesday in cautious trading ahead of U.S. consumer price data that could shift the country's monetary policy outlook, while investors waited to see if the earnings of big U.

The dollar fell to a one-week low as investors turned cautious ahead of U.S. inflation data later. U.S. inflation is expected to accelerate to 2.9% year over year in December but core inflation is seen unchanged at 3.

European stock markets experienced a strong rally following cooling inflation data from the UK and the US on Wednesday. However, the weakness in the euro and the pound sterling may persist due to the ongoing economic and political uncertainties.