By Elizabeth Howcroft PARIS (Reuters) -European stocks were mixed on Wednesday and Wall Street futures were down as traders were cautious about signs of U.S. tariffs causing inflation. Wall Street markets fell late on Tuesday and U.

Consumer Price Index (CPI) report was unexpectedly hot, showing a 0.3% increase month-over-month and a 2.7% rise year-over-year. In response, markets fell from recent highs. This is likely due to investors reassessing the likelihood of near-term interest rate cuts by the Federal Reserve.

The report on producer prices adds to a mixed picture for inflation as the economy adjusts to the imposition of import tariffs.

Treasury Secretary Scott Bessent, in an interview on Bloomberg Television, said he hasn't looked at the CPI number that's about to be released -- he is entitled to early access --but said not to read too much into one month's number.

The Indian rupee is expected to hold near the key 86-per-dollar level on Tuesday, with traders awaiting U.S. inflation data that could influence expectations around Federal Reserve rate cuts.

Wholesale inflation remained unchanged in June, according to new Producer Price Index data. Meanwhile, "crypto week" in Washington has hit a snag as Republican lawmakers side with Democrats on cryptocurrency legislation.

Cryptocurrency markets are trading lower on Tuesday morning as fears of whales taking profits grip influence sentiment. Cryptocurrency Ticker Price Bitcoin (CRYPTO: BTC) $116,541.21 Ethereum (CRYPTO: ETH) $2,

In the UK, a sizable upward revision to May's payroll data, combined with hotter-than-expected inflation data, takes some of the pressure off BoE to cut rates more quickly. Read more here.