Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

European stock futures higher; BoE meeting in focus

Published 05/11/2023, 02:16 PM
Updated 05/11/2023, 02:16 PM
© Reuters.

Investing.com - European stock markets are expected to open higher Thursday, as investors digest the latest U.S. inflation figures ahead of the latest Bank of England policy-setting meeting.

At 02:00 ET (06:00 GMT), the DAX futures contract in Germany traded 0.2% higher, CAC 40 futures in France climbed 0.2% and the FTSE 100 futures contract in the U.K. rose 0.1%.

Data released Wednesday showed that U.S. consumer prices rose at a slower-than-expected pace in April, raising hopes that the Federal Reserve's interest rate hiking cycle is close to an end. 

This helped the tech-heavy Nasdaq Composite index close 1% higher on Wall Street Wednesday, and this positive sentiment is expected to filter through to the European market on Thursday.

That said, gains are likely to be limited after softer-than-expected Chinese inflation data pointed to a slowing economic rebound in Asia’s largest economy and a major export market for Europe’s largest companies.

Back in Europe, the Bank of England holds its latest policy-setting meeting later in the session, with its policymakers expected to authorize a 12th consecutive rate hike as U.K. inflation remains in double figures, the highest of any major economy.

In corporate news, Merck KGaA (ETR:MRCG) warned that its operating earnings could decline by as much as 10% this year as the German science and technology company’s outlook for its specialty chemicals business darkened.

Thyssenkrupp (ETR:TKAG), by contrast, raised the outlook for its closely watched free cash flow before mergers and acquisitions, expecting it to turn positive for the first time in seven years.

Earnings are also due from the likes of ITV (LON:ITV), Bayer (ETR:BAYGN), Deutsche Telekom (ETR:DTEGn), RWE (ETR:RWEG) and Prada SpA (HK:1913).

Oil prices rose Thursday, bouncing after recent losses after stronger-than-expected fuel demand data from the United States, the world's top oil consumer. 

Official U.S. data from the Energy Information Administration showed that crude inventories rose by almost 3 million barrels last week. 

However, gasoline stocks fell by 3.2 million barrels, much more than the 1.2 million expected, while U.S. jet fuel demand rose to its highest level since December 2019, suggesting demand for transport fuels remains resilient in the U.S.

By 02:00 ET, U.S. crude futures traded 1% higher at $73.28 a barrel, while the Brent contract climbed 1% to $77.18.

Additionally, gold futures rose 0.1% to $2,038.35/oz, while EUR/USD traded marginally lower at 1.0978.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.