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Title: European Stock Futures Edge Higher; Credit Suisse Posts Profit Warning

Jun 08, 2022 01:57AM ET

By: AnalysisWatch

European stock markets are expected to open higher on Wednesday, supported by a positive close on Wall Street, but a profit warning from banking giant Credit Suisse is expected to limit gains.

At 2 a.m. EDT (0600 GMT), Germany's DAX was 0.4 percent higher, France's CAC 40 was 0.3 percent higher and Britain's FTSE 100 was 0.3 percent higher.

European stocks are set to benefit from late gains on Wall Street. The Dow Jones Industrial Average rose more than 260 points, or 0.8 per cent, in late trading thanks to a rebound in the energy and technology sectors, which mitigated the decline in consumer stocks after Target's profit warning.

It cited the Russian invasion of Ukraine, significant monetary tightening by major central banks in response to a sharp rise in inflation and the withdrawal of COVID-related stimulus measures as reasons for the difficulties this quarter.

Economic data released on Wednesday showed that German industrial production rose 0.7% month-on-month in April, an improvement from the previous month's 3.7% decline.

French trade data and Italian retail sales for April will be released later in the session, ahead of Eurozone first quarter employment and GDP data.

Elsewhere, Inditex is likely to be in focus after the world's largest fast fashion retailer reported an 80% rise in net profit for the February-April period, driven by the company beating pre-pandemic sales figures.

Pernod Ricard gave a positive outlook on Wednesday as the world's second-largest spirits group said it would target annual organic sales growth at the top end of its medium-term range of 4-7%.

Oil prices rose on Wednesday, continuing their recent upward trend as the summer driving season gets into full swing in the US and China struggles with virus-related problems.

Official data from the US Energy Information Administration will be released at 10:30 CET (1430 GMT).

At 2 a.m., U.S. crude futures were 0.6 percent higher at $120.15 a barrel, after hitting their highest level since 8 March on Tuesday. The Brent crude contract rose 0.5 per cent to $121.14 after closing at its highest level since May 31.

In addition, gold futures fell 0.1% to $1,851.40 an ounce, while the EUR/USD exchange rate fell 0.1% to $1.0687.

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