© Reuters.
By Peter Nurse
Investing.com – European stock markets are expected to open in a subdued fashion Wednesday ahead of the release of Eurozone services activity data, with risk sentiment still fragile.
At 02:00 ET (06:00 GMT), the contract in Germany traded 0.1% lower, in France dropped 0.2%, while the contract in the U.K. rose 0.1%.
Trading ranges are expected to be tight in Europe as a long weekend approaches, with investors wary about the possibility of recessions on both sides of the Atlantic.
Over in the U.S., Tuesday’s JOLTS report showed that dropped to their lowest level in nearly two years in February. This followed data showing that the U.S. sank deeper into contraction in March.
Back in Europe, there have been some encouraging economic signs, but Monday’s data showed that factories struggled across the euro zone last month with consumers feeling the pinch from rising living costs.
And while there is some debate over whether the will pause its rate-hiking cycle next month, the is widely expected to increase interest rates by a hefty 50 basis points in May as it battles rising underlying inflation.
The Reserve Bank of New Zealand undertook such a move earlier Wednesday, raising by 50 basis points, more than expected, citing overheated inflation.
The main focus Wednesday will be the release of the final in March, which is expected to show continued expansion.
In the corporate sector, French catering and food services group Sodexo (EPA:) announced plans to spin-off and list its Benefits & Rewards Services business during 2024.
Barry Callebaut (SIX:), the world’s biggest chocolate maker, appointed Peter Feld as its new chief executive after reporting a decline in first half sales volumes.
Oil prices rose Wednesday, with industry data showing a fall in U.S. crude inventories helping extend a rally prompted by the weekend’s unexpected OPEC+ output cut.
U.S. crude oil inventories fell by around 4.3 million barrels in the week ended March 31, according to data from the , suggesting some improvement in demand.
The U.S. will release its official weekly report later in the session.
By 02:00 ET, futures traded 0.4% higher at $81.04 a barrel, while the contract climbed 0.5% to $85.32.
Additionally, rose 0.2% to $2,041.25/oz, while traded 0.1% higher at 1.0957.
