The European stock market is expected to kick off Wednesday’s trading session largely unchanged as investors look forward to U.S. inflation data for clues on future Federal Reserve policy.
The DAX futures contract in Germany edged slightly higher by 0.1%. Also, CAC 40 futures in France climbed higher by 0.1%. Unfortunately, the FTSE 100 futures contract in the U.K. traded flat.
This week’s market performance hasn’t inspired investors, and that’s because the market has remained largely choppy. Investors are looking forward to June’s consumer price index report today for fresh impetus.
The report will carry annual headline inflation, including food and energy. Experts predict the reading will come in at 8.8%, slightly above May’s 8.6%. Should that be the case, it will push US inflation to a 40-year peak.
With such an elevated figure, experts believe the U.S. central bank will continue on its aggressive interest rate rises, in addition to the 75 basis points hike in its last meeting, despite the risks that such a move could push the U.S economy into recession.
Elsewhere, inflation data in Spain, Germany and France are expected today. Analysts believe the report will show consumer prices at elevated levels.
Meanwhile, the European Central Bank has promised to raise interest rates during its July meeting. Nevertheless, sentiments in the region are weak amid fears that the energy crisis rocking the region will continue.
Similarly, the German Economic Sentiment indicator plummeted to its lowest level in eleven years as the country looks set to face gas rationing during winter.
Thankfully, the U.K. GDP increased by 0.5% in May. It is the country’s first growth in three months, coming in slightly above 0.1% expectations.
In other news, Credit Suisse (SIX: CSGN) is in the spotlight as the company pulled the plug on the initial public offering of its 1a Immo PK real estate fund. The company stated that the move was informed by current market turbulence.
Oil prices have remained largely unchanged as traders look keenly to the U.S. inflation reports, which could trigger further rate hikes, weakening global activities.
According to data released Tuesday by the American Petroleum Institute, U.S. crude stocks increased by over 4.8 million barrels for the week ended July 8.