European Stocks Seen Opening Positive

European stock markets are expected to open on a positive note on Wednesday amidst the strong retail sales numbers in the U.S. and the drop in the regional unemployment numbers. However, sentiment is also likely to be impacted by the aggressive comments from the Fed on bringing down inflation.

On Tuesday, European markets had recorded strong gains, in the backdrop of low unemployment numbers from France and U.K. Germany’s DAX led the rally with a 1.59 percent uptick. France’s CAC 40 added 1.30 percent; the pan European Stoxx 600 added 1.22 percent; U.K.’s FTSE 100 rallied 0.72 percent; while Switzerland’s SMI moved up 0.50 percent.

The Wall Street had closed with strong gains on Tuesday as strong retail sales numbers helped ease concerns surrounding economic growth. Data released Tuesday had shown the retail sales in the U.S. increasing 0.9 percent month-on-month in April of 2022, matching the market forecasts. Nasdaq-100 surged 2.6 percent to close at 12,564.10 and the Dow Jones Industrial Average gained 1.34 percent to end at 32,654.59.

The FTSE 100 Futures (June) is trading 0.07 percent lower. The DAX Futures (June) is trading 0.16 percent higher.

U.S. Dollar Index, which measures the strength of the Dollar against a basket of six currencies is currently flat at 103.36. The EUR/USD pair has dropped 0.12 percent overnight to 1.0534, while the GBP/USD pair has shed 0.04 percent to 1.2485.

Gold Futures for June settlement shed 0.6 percent to trade at $1,809 per troy ounce, versus $1,819 on Tuesday, as strong retail sales numbers from the U.S. ruled out any relaxation in the Fed’s aggressive rate hike stance.

WTI Crude Futures for July settlement is trading at $111.10, an overnight gain of 1.34 percent whereas Brent Crude Futures for July settlement is trading at $112.87, up 0.84 percent from the previous close, amidst hopes that the demand from China would soon be reflected in the market.

American stock futures point to negative trends, with the US 30 (DJIA) index down 0.19 percent and US500 (S&P 500) down 0.27 percent.

Asian markets are trading mixed despite strong gains in Wall Street on Tuesday. New Zealand’s NZX 50 is trading 1.08 percent higher; Australia’s S&P ASX 200 has gained 0.79 percent; Japan’s Nikkei 225 is trading 0.75 percent higher; India’s Nifty 50 has moved 0.50 percent higher; whereas South Korean Kospi has edged up 0.19 percent. China’s Shanghai Composite has however lost 0.18 percent; Hong Kong’s Hang Seng is trading almost 0.28 percent lower.

In economic data releases from the region, U.K is expecting the inflation readings for the month of April. Annual inflation in the U.K is seen rising to 9.1 percent, from the 30-year high of 7 percent in the month of March.

Euro Area’s final inflation reading for the month of April is expected to be 7.5 percent.

Major earnings updates due Wednesday from the region are Experian, Aviva, Burberry Group, and British Land Company.

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