MicroDegree

INDUSTRY UPDATES

As investors await the latest inflation statistics from the United States, European markets are anticipated to begin lower on Wednesday, extending losses recorded in previous sessions this week.

According to IG data, the FTSE index in the United Kingdom is expected to open 15 points down at 7,196, Germany’s DAX is expected to start 65 points lower at 12,830, France’s CAC 40 is expected to open 21 points lower at 6,024, and Italy’s FTSE MIB is expected to begin 75 points lower at 21,289

On Wednesday, global markets will be closely watching inflation data from the United States. According to Dow Jones, the June consumer price index is likely to show headline inflation, which includes food and energy, climbing over May’s 8.6 percent figure to 8.8 percent.

The strong number predicted on Wednesday might drive the Federal Reserve to raise interest rates by another 75 basis points at its meeting later this month. The Federal Reserve lifted its benchmark interest rates by three-quarters of a percentage point last month, to a range of 1.5 percent -1.75 percent, in its most aggressive increase since 1994.

In overnight trade on Tuesday, US stock futures were slightly moved as investors anticipated inflation data. Overnight in Asia-Pacific markets, equities rose as China announced trade statistics and the Bank of Korea and the Reserve Bank of New Zealand raised interest rates.

Other statistics released earlier on Wednesday revealed that the United Kingdom’s economy increased unexpectedly in May, with production increasing by 0.5 percent, according to the Office for National Statistics. A Reuters survey of analysts predicted no growth from April to May.

Reference:

Ellyatt, H. (2022, July 13). European stocks close lower as investors react to hot U.S. inflation data. CNBC. Retrieved July 15, 2022, from https://www.cnbc.com/2022/07/13/european-markets-open-to-close-us-inflation-data-for-june.html?&qsearchterm=US+inflation+european 

This article is not belongs to us!

We gather information from the world’s leading prestigious newspapers and edit them. Copyright belongs to the editorial board of the newspapers from which we retrieve information. Please see the cited source.

Professional Certified could transfer credits & fees