European stocks higher; Eurozone CPI data looms large

By Peter Nurse 

Investing.com - European stock markets traded higher ahead of key Eurozone inflation data, but sentiment remains fragile amid uncertainty over China’s COVID policies.

At 03:50 ET (08:50 GMT), the DAX index in Germany traded 0.4% higher, CAC 40 in France traded up 0.3% and the FTSE 100 in the U.K. gained 0.3%.

French inflation unexpectedly remained at a record high in November, with harmonized consumer prices in the Eurozone’s second-largest economy rising 7.1% from a year earlier, matching October’s increase, defying a slowdown in other parts of the currency bloc.

Inflation numbers out of Germany and Spain had both fallen short of expectations on Tuesday, raising hopes that inflation had peaked earlier than expected.

This puts the Eurozone CPI release for November, due later in the session, firmly in the spotlight, with investors looking for signs that the record rise in inflation in the region has peaked.

This is expected to come in at 10.4% on an annual basis, down from 10.6% the prior month.

Elsewhere, investors will keep a wary eye on events in China after gains on Tuesday on rumors that Beijing planned to scale back its zero-COVID policy after civil unrest, even though the government has yet to confirm this intention.

Federal Reserve chairman Jerome Powell is also scheduled to speak later Wednesday, and his comments will be carefully studied for more cues on future U.S. monetary policy.

In corporate news, H&M (ST:HMb) stock rose 0.3% after the world’s second largest fashion retailer said it will cut some 1,500 jobs as part of its cost cutting drive.

Mulberry (LON:MUL) stock slumped 15% after the luxury handbag maker reported a half-year loss, with sales hard hit across the U.K. as soaring inflation cut discretionary spending.

Rio Tinto (LON:RIO) stock fell 0.2% after the mining giant published conservative output forecasts for 2023.

Crude oil prices rose Wednesday, boosted by an industry report showing falling U.S. crude inventories, although caution ahead of the weekend’s OPEC+ meeting limited gains.

Data from the American Petroleum Institute, released Tuesday, showed that U.S. crude stocks shrank by a much bigger-than-expected 7.9 million in the past week, suggesting that the U.S. government has likely scaled back its drawdowns from the Strategic Petroleum Reserve.

If confirmed by the official government release later Wednesday, this would point to tighter supply conditions in the U.S., the world’s largest consumer of crude.

However, these gains have been tempered by a Reuters report stating that the Organization of the Petroleum Exporting Countries and allies, known as OPEC+, is likely to keep oil output policy unchanged at a meeting on Sunday.

Hopes had risen earlier in the week that the group of top producers would agree to a production cut in order to support prices, which at the time had fallen to their lowest levels this year.

By 03:50 ET, U.S. crude futures traded 0.7% higher at $78.73 a barrel, while the Brent contract rose 0.7% to $84.87. 

Additionally, gold futures rose 1.4% to $1,772.10/oz, while EUR/USD traded 0.4% higher at 1.0365.

Begin trading today! Create an account by completing our form

Privacy Notice

At One Financial Markets we are committed to safeguarding your privacy.

Please see our Privacy Policy for details about what information is collected from you and why it is collected. We do not sell your information or use it other than as described in the Policy.

Please note that it is in our legitimate business interest to send you certain marketing emails from time to time. However, if you would prefer not to receive these you can opt-out by ticking the box below.

Alternatively, you can use the unsubscribe link at the bottom of the Demo account confirmation email or any subsequent emails we send.

By completing the form and downloading the platform you agree with the use of your personal information as detailed in the Policy.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.7% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

Back to top

Office network
  • London Office
    One Financial Markets 

    1 Finsbury Market
    London
    EC2A 2BN
    United Kingdom


    T:  + 44 ( 0 ) 203 857 2000
    E:  info@ofmarkets.com
  • Dubai Office
    One Financial Markets 
    OT19-39 Central Park Tower
    Dubai International Finance Centre
    Dubai
    United Arab Emirates
     
    T: + 971 44 22 888
    E:  info@ofmarkets.com
     

One Financial Markets is the trading name of Axi Financial Services (UK) Ltd, a company registered in England with company number 6050593. Axi Financial Services Ltd is authorised and regulated by the Financial Conduct Authority in the UK (under firm reference number 466201) and the Financial Sector Conduct Authority in South Africa (with FSP number 45784).

The information on this site is not directed at residents of the United States, Belgium, Poland or any particular country outside the UK and is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

www.onefinancialmarkets.com is owned and operated by Axi Financial Services (UK) Ltd.

Award winning broker
We have been presented with a number of awards that recognise the quality of our service and dedication to our clients :

Best FSA Regulated Broker
Saudi Money Expo

Best Education Product
Saudi Money Expo

Best Broker - Online Trading
IAIR Awards

Best Institutional Broker
Saudi Money Expo

Best FX Services Broker
CN Forex

Top International
FX Broker 2015

Saudi Money Expo

Broker of the Year
Online Trading – Middle East

IAIR Awards

Best Forex
Customer Service 2018

JFEX Awards

We accept the following payment methods: