© Reuters.
By Peter Nurse
Investing.com – European stock markets are expected to open lower on Wednesday as investors digest major inflation data from Germany ahead of the release of the US Federal Reserve minutes.
At 02:00 ET (07:00 GMT), the contract in Germany traded 0.2% lower, in France it fell 0.1%, while the contract in the UK fell 0.4%. .
The latest economic activity data in both Europe and the United States point to an unexpected pick-up in business activity this month, but equity markets have reacted negatively as this suggests inflation may be harder to control, which strengthens the case for higher interest rates. .
The German rose 1.0% in February, after falling 0.8% the previous month, resulting in an increase of 8.7%, up from 8.6% in January.
Italian inflation figures are also expected later in the session, with the country expected to remain in double digits on a yearly basis.
Across the pond, the results of the Fed meeting earlier this month are expected on Wednesday and will be closely watched for signs of how the high interest rates projected by policymakers will rise after the Recent data will show solid, stronger than expected and sticky.
Earlier in the day. the Reserve Bank of New Zealand raised its level by 50 basis points to 4.75%, its highest level since late 2008, and posted further increases as inflation remained high.
In the business sector, red river (LON:) will be in the spotlight after the UK-listed miner more than halved its dividend and reported a sharp drop in annual profit as iron ore prices fell due to slower demand, particularly from China.
danone (EPA:) posted stronger-than-expected sales growth in the last quarter of 2022 as the French food company was able to raise prices in the face of rising raw material and energy costs.
Quarterly results of companies such as iberdrola (BME:), telephone (BME:), Ferrovial (BME:) and Lloyds Banking Group (LON:) will also be in the spotlight.
Oil prices eased on Wednesday on concerns that higher interest rates will hurt economic activity in the US, the world’s biggest consumer, and thus boost demand.
US crude inventory data for , a day later than usual after the holiday on Monday, will be released later in the session and is expected to show another build-up, exacerbating demand concerns.
As of 02:00 ET, it was trading 0.6% lower at $75.94 a barrel, while the contract was down 0.5% at $82.68.
It was also up 0.1% at $1,843.95/oz, while trading 0.1% higher at $1.0659.