- European stocks are expected to open lower on Wednesday as market participants await the next key reading of U.S. inflation data.
- The U.K.’s FTSE index is seen opening 15 points lower at 7,257, Germany’s DAX lower by 40 points at 15,994, France’s CAC 40 down by 13 points at 7,026 and Italy’s FTSE MIB 38 points lower at 27,238, according to data from IG.
LONDON — European stocks are expected to open lower on Wednesday as market participants wait for the next key reading of U.S. inflation data.
The U.K.’s FTSE index is seen opening 15 points lower at 7,257, Germany’s DAX lower by 40 points at 15,994, France’s CAC 40 lower by 13 points at 7,026 and Italy’s FTSE MIB 38 points lower at 27,238, according to data from IG.
Investors are awaiting the release of the latest U.S. consumer price index, a key inflation reading, on Wednesday. The consumer price index is also expected to show a 0.6% jump compared to the prior month, or a year-over-year gain of nearly 6%, which would be the most in 30 years.
Economists expect core CPI, which excludes food and energy and is the Federal Reserve’s preferred measure of inflation, to have risen 0.4%, or 4.3% year-over-year.
The US October producer price index came in as expected Tuesday, with PPI rising 0.6% month-on-month, in line with estimates. Wholesale prices jumped 8.6% in October from a year ago, however, the hottest annual pace on record in almost 11 years.
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US equity futures were lower on Tuesday night while major Asia-pacific markets fell Wednwsday, as investors reacted to the release of Chinese inflation data for October; the consumer price index for October rose 1.5% from last year, against expectations in a Reuters poll for a 1.4% increase. Producer prices, however, rose more than expected.
In a busy day for earnings in Europe, reports are due from Credit Agricole, Engie, Alstom, EDF, Allianz, Continental, Dialog, E.On, Infineon, Siemens Energy, ABN Amro, Thomas Cook and Marks & Spencer, among others.
Data releases include final inflation data for Germany in October and Italian industrial output for September.
Source : CNBC