European stock markets are poised to open higher on Wednesday, building on the momentum from the previous session’s robust gains fueled by favorable developments such as the cooling of U.S. inflation and resilient economic data from China.
As of 02:00 ET (06:00 GMT), the DAX futures contract in Germany traded 0.2% higher, CAC 40 futures in France climbed 0.3%, and the FTSE 100 futures contract in the U.K. rose 0.3%.
Investors found reassurance in Chinese economic recovery as industrial output outpaced expectations, and retail sales growth exceeded forecasts. This positive news, coupled with China’s central bank injecting liquidity into the banking system, contributed to a favorable atmosphere for European equities.
In the U.K., inflation data showed a significant drop in October, with the headline annual figure falling to 4.6% from the previous month’s 6.7%. The monthly release remained flat, indicating a notable cooling from the 0.5% growth seen in September.
Corporate earnings announcements from chipmaker Infineon, Siemens Energy, and U.K. insurer Aviva are expected during the session. French carmaker Renault outlined financial targets for its electric vehicles unit, Ampere, which is set to be listed on the market next year.
Oil prices saw an uptick, buoyed by signs of easing U.S. inflation and robust economic performance in China, the largest importer of crude oil globally. U.S. crude futures traded 0.6% higher at $78.60 a barrel, while the Brent contract climbed 0.6% to $82.94 a barrel.
The U.S. Energy Information Administration is set to release its first oil inventory report in two weeks, following a system upgrade. Gold futures also rose 0.3% to $1,973.10/oz, while EUR/USD traded 0.1% lower at 1.0874. Investors are keeping a close eye on various economic indicators and corporate reports as they navigate the evolving market landscape.