🧐 ProPicks AI October update is out now! See which stocks made the listPick Stocks with AI

European stock futures edge higher; caution ahead of U.S. CPI release

Published 10-05-2023, 11:48 am
© Reuters.
EUR/USD
-
XAU/USD
-
TLIT
-
CONG
-
CAGR
-
ALSO
-
TUI1n
-
ASOS
-
DE30
-
GC
-
LCO
-
UK100
-
CL
-
F40
-
EONGn
-
ABNd
-

Investing.com - European stock markets are expected to open marginally higher Wednesday, as investors cautiously await the release of key U.S. inflation data while the earnings season continues.

At 02:00 ET (06:00 GMT), the DAX futures contract in Germany traded 0.1% higher, CAC 40 futures in France climbed 0.1% and the FTSE 100 futures contract in the U.K. rose 0.1%.

Global sentiment received a boost when the U.S. Federal Reserve hinted last week that it could pause its aggressive monetary tightening cycle at its next meeting in June if the data allowed it to do so.

Friday’s official jobs report came in generally stronger than expected, and now financial markets are in holding patterns as they await the release of the U.S. consumer price index due later on Wednesday.

The reading is expected to show that the core index, which excludes volatile food and fuel prices, increased by 5.5% in April on a year-over-year basis, after a 5.6% increase a month earlier. 

The headline rate is expected to increase by 5% annually, suggesting inflation remains sticky, well above the Federal Reserve’s 2% annual target.

Back in Europe, German consumer prices rose 0.4% on the month in April, an annual increase of 7.2%, as prices remained elevated in the eurozone’s largest economy.

Italian industrial production data for March and the latest Spanish consumer confidence figures are due later in the session.

In corporate news, ABN Amro (AS:ABNd) posted a 77% jump in first-quarter net profit earlier Wednesday, with the Dutch bank helped by rising interest rates and lower costs.

Alstom (EPA:ALSO) offered up positive guidance for the current fiscal year, with the French train maker adding market momentum remained very positive with a growing pipeline of orders. However, it delayed its mid-term targets by one year due to high inflation.

Earnings from the likes of ASOS (LON:ASOS), Continental (ETR:CONG), E.ON (ETR:EONGn), Tui (ETR:TUI1n), Credit Agricole (EPA:CAGR) and Telecom Italia (BIT:TLIT) will also be studied during the session.

Oil prices fell Wednesday after industry data pointed to an unexpected build in U.S. crude stocks, raising concerns over a possible fall in demand from the largest consumer in the world.

Data from the American Petroleum Institute, released Tuesday, indicated that U.S. crude inventories rose by about 3.6 million barrels in the week ended May 5, while gasoline stockpiles rose by just under 400,000 barrels.

Official numbers are due later in the session, and traders will also study the U.S. inflation numbers for clues about future Federal Reserve interest rate decisions.

By 02:00 ET, U.S. crude futures traded 0.7% lower at $73.22 a barrel, while the Brent contract dropped 0.7% to $76.89.

Additionally, gold futures fell 0.4% to $2,035.80/oz, while EUR/USD traded 0.1% higher at 1.0968.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.