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Title: European Stock Futures Mixed; Inflation Data, Ukraine War in Focus

Apr 13, 2022 02:05AM ET

By: AnalysisWatch

European stock markets are forecast to open in mixed territory on Wednesday, with investors considering the risks posed by rising inflation, central bank policy and the continuing conflict in Ukraine.

At 10:05 PM ET, DAX futures in Germany were trading 0.6% up, while CAC 40 futures in France were off 1.3% and FTSE 100 futures in the UK were falling 0.1%.

Hopes for a quick end to the war in Ukraine were dashed late on Tuesday night when Russian President Vladimir Putin pledged to press ahead with the invasion, saying peace talks with Ukraine were "at an impasse" and hinting that the seven-week offensive would go ahead as planned.

U.S. President Joe Biden for the first time called Moscow's invasion of Ukraine "genocide," and the United States will reportedly announce $750 million in additional military aid-a sign that the war will continue.

In other news, the U.S. Consumer Price Index was anticipated to have increased 8.5% year-on-year in March, hitting its highest level since late 1981, but U.S. yields eased on Tuesday, ending their seventh straight advance, as some traders deemed the CPI release not as bad as they worried.

The U.K.'s consumer price index rose more than expected on Wednesday, hitting a 30-year high in March, rising 7% year-on-year and 1.1% month-on-month.

These inflationary pressures are likely to keep the Bank of England on a tightening course as the British central bank has already hiked interest rates back to pre-pandemic levels, the first time this has occurred at three consecutive meetings since 1997.

The European Central Bank will hold its last monetary policy-setting meeting on Thursday, and pressure on policymakers to tighten is mounting after data released on Tuesday showed German consumer inflation rose 7.3% year-on-year.

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