European stock futures mixed; risk sentiment is fragile

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 DAX futures contract in Germany traded 0.1% lower, CAC 40 futures in France dropped 0.2%, while the FTSE 100 futures 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 job openings dropped to their lowest level in nearly two years in February. This followed data showing that the U.S. manufacturing sector sank deeper into contraction in March.

Back in Europe, there have been some encouraging economic signs, but Monday’s manufacturing activity 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 Federal Reserve will pause its rate-hiking cycle next month, the European Central Bank 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 interest rates by 50 basis points, more than expected, citing overheated inflation.

The main focus Wednesday will be the release of the final Eurozone purchasing managers’ index data for the services sector in March, which is expected to show continued expansion.

In the corporate sector, French catering and food services group Sodexo (EPA:EXHO) announced plans to spin-off and list its Benefits&Rewards Services business during 2024.

Barry Callebaut (SIX:BARN), 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 American Petroleum Institute, suggesting some improvement in demand.

The U.S. Energy Information Administration will release its official weekly report later in the session.

By 02:00 ET, U.S. crude futures traded 0.4% higher at $81.04 a barrel, while the Brent contract climbed 0.5% to $85.32. 

Additionally, gold futures rose 0.2% to $2,041.25/oz, while EUR/USD traded 0.1% higher at 1.0957.