Breaking News
Investing Pro 0
NEW! Get Actionable Insights with InvestingPro+ Try 7 Days Free

European Stock Futures Edge Lower; Fed Minutes Prompt Caution

Stock Markets May 26, 2022 07:22
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Peter Nurse - European stock markets are expected to open marginally lower Thursday, with investors reacting cautiously as the minutes from the Federal Reserve's last meeting pointed to further aggressive tightening ahead.

At 2 AM ET (0600 GMT), the DAX futures contract in Germany traded 0.3% lower, CAC 40 futures in France traded 0.1% lower, and the FTSE 100 futures contract in the U.K. fell 0.3%.

The minutes from the Fed's May 3-4 meeting, released on Wednesday, showed that all policymakers supported the central bank’s rate increase of 50 basis points, the first of that size in more than 20 years.

Additionally, the minutes stated that "most participants" felt that further hikes of that size would "likely be appropriate" at the Fed's policy meetings in June and July.

Sentiment remains fragile within the European equity markets amid persistent concerns over global growth as a number of central banks seek to combat soaring inflation, exacerbated by the ongoing war in Ukraine, by tightening monetary policy.

European Central Bank President Christine Lagarde said this week that the ECB's negative deposit rate should start rising in July and could be at zero or "slightly above" by the end of September before rising further "towards the neutral rate".

The economic data slate is largely empty on Thursday, with Italian confidence data and industrial sales being the only notable entries. Eyes will turn later in the session to the U.S. and the release of quarterly GDP growth data as well as weekly jobless claims for signs the U.S. economy is starting to cool.

In corporate news, the tech sector is likely to be in focus after U.S. chip designer Nvidia (NASDAQ:NVDA) forecast late Wednesday that its sales of video game chips would decline in the current quarter, citing supply-chain issues resulting from China's COVID-19 lockdowns.

Back in Europe, Auto Trader (LON:AUTOA) and United Utilities (LON:UU) are among companies scheduled to offer up earnings results.

Oil prices edged higher Thursday, helped by a bigger-than-expected drawdown in U.S. crude inventories last week of one million barrels, an illustration of a tight global market.

The market remains focused on whether the European Union can agree to an embargo on Russian oil in retaliation for the invasion of Ukraine. 

European Council President Charles Michel on Wednesday said he is confident that unanimous agreement can be reached before the council's next meeting on May 30, but Hungary remains a stumbling block.

By 2 AM ET, U.S. crude futures traded 0.4% higher at $110.77 a barrel, while the Brent contract rose 0.2% to $111.30. 

Additionally, gold futures fell 0.2% to $1,842.76/oz, while EUR/USD traded 0.1% lower at 1.0676.

European Stock Futures Edge Lower; Fed Minutes Prompt Caution

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Our Apps
© 2007-2022 Fusion Media Limited. All Rights Reserved.
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
  • Sign up for FREE and get:
  • Real-Time Alerts
  • Advanced Portfolio Features
  • Personalized Charts
  • Fully-Synced App
Continue with Google
Sign up with Email