Title: European Stock Futures Flat; U.K. May GDP Rises, U.S. CPI in Focus
Jul 13, 2022 02:04AM ET
European stock markets are expected to open broadly unchanged on Wednesday as investors cautiously await the release of the latest U.S. inflation report, which could guide future Federal Reserve policy.
At 02:05 AM ET (0605 GMT), the DAX futures contract in Germany was trading 0.1% higher, the CAC 40 futures in France were up 0.1%, and the FTSE 100 futures contract in the U.K. was trading flat.
Investors have been on edge this week, with stock market movements largely insubstantial, as they prepare for the release of the June consumer price index out of the US later on Wednesday.
Annual headline inflation, including food and energy, is expected to rise above May's 8.6% level to 8.8%, a 40-year high.
In Europe, inflation data from Germany, Spain, and France will also be released on Wednesday, and should show that consumer prices remain at elevated levels in the Eurozone.
The European Central Bank has pledged to raise interest rates at its next meeting in July, but sentiment in the region is very weak amid fears of a worsening energy crisis in the region, as the largest pipeline carrying Russian gas to Germany has begun 10 days of annual maintenance.
Germany's economic sentiment gauge, compiled by the ZEW think tank, fell Tuesday to an 11-year low in July as the country faces the prospect of a winter of gas rationing.
Oil prices traded virtually unchanged on Wednesday as traders cautiously awaited U.S. inflation data, which could prompt further rate hikes in the U.S., weakening global activity.
U.S. crude stockpiles rose by about 4.8 million barrels in the week ended July 8, according to data Tuesday from the American Petroleum Institute, exacerbating fears of a drop in oil demand.
The official government inventory report will be released later on Wednesday.
Elsewhere, gold futures fell 0.1% to $1,722.75 an ounce, while EUR/USD traded slightly higher at $1.0039.