European stocks may open lower on Wednesday, as another hotter-than-expected U.S. CPI print raised worries the Fed may tighten its monetary policy sooner than expected.

Asian markets fell on U.S. inflation jitters while gold edged up as the U.S. Treasury yields and dollar eased slightly in Asia trade.

Oil fell on demand concerns after data showed that China’s first-half crude imports dropped.

Looking ahead, Congressional testimony from Federal Reserve Chari Jerome Powell is likely to attract attention later today along with the Fed’s Beige Book.

Consumer and producer prices data from the U.K. are due later in the session, heading a light day for the European economic news.

On the earnings front, trading may be impacted by reaction to the latest earnings news, with Bank of America, Citigroup, Delta Air Lines and Wells Fargo among the companies due to report their quarterly results before the start of U.S. opening bell.

U.S. stocks pulled back from record highs overnight and bond yields rose as new data showed consumer inflation rose at its fastest pace in nearly 13 years in June.

The consumer price index jumped an annual 5.4 percent, coming in well above expectations for a 5 percent increase and adding pressure on the Fed to tighten policy sooner than expected.

The Dow slipped 0.3 percent while the tech-heavy Nasdaq Composite and the S&P 500 both dropped around 0.4 percent.

European stocks ended little changed on Tuesday as strong earnings from top name U.S. banks JP Morgan Chase and Goldman Sachs, and encouraging Chinese trade data helped offset investor concerns about rising inflation.

The pan European Stoxx 600 ended flat with a positive bias. The German DAX, France’s CAC 40 index and the U.K.’s FTSE 100 all ended marginally lower.

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