Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

European Stock Futures Higher; ECB Minutes Loom Large

Stock Markets Jul 07, 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 higher Thursday, building on the previous session’s gains as investors await the release of the minutes from the latest meeting of the European Central Bank.

At 02:05 AM ET (0605 GMT), the DAX futures contract in Germany traded 1% higher, CAC 40 futures in France climbed 1.1%, and the FTSE 100 futures contract in the U.K. rose 1.2%.

Equity investors have been trying this week to put behind them the brutal sell-off of the first half of the year, while nervously keeping a close eye on central bank actions as they try to assess the impact of aggressive rate hikes on global growth.

The DAX gained almost 200 points, or 1.6%, on Wednesday, while the FTSE 100 rose 1.2%, and the CAC 40 gained 2%.

The minutes of the June meeting of the Federal Reserve were released on Wednesday, and detailed the U.S. central bank's firm intent to get prices under control, hence the 0.75 percentage-point rate increase which came out of the meeting.

According to the minutes, participants judged that an increase of 50 or 75 basis points would likely be appropriate at the policy meeting later this month.

The European Central Bank will also publish the minutes of its last meeting later Thursday, at which the policymakers decided that a rate hike of 50 basis points would be appropriate in July.

Europe's inflation is running at record levels and surging energy prices suggest the upward pressure on consumer prices will remain substantial for a while longer. That said, economic data has pointed to a rapid slowing of economic growth in the region, with the latest example being German industrial production growing just 0.2% on the month in May, a drop from revised upward 1.3% growth the month before.

Also of interest will be the growing political crisis in the U.K., with Prime Minister Boris Johnson refusing to resign as Conservative leader and prime minister despite losing the confidence of a substantial number of senior figures in his own party.

On the corporate front, Telecom Italia (BIT:TLIT) is likely to be in the spotlight as it set out a plan to split its fixed network infrastructure from its service businesses in a bid to raise cash and cut debt.

Oil prices edged lower Thursday, largely stabilizing after the hefty losses of the last two sessions as the focus returned to the underlying tight nature of supplies even as fears over the demand outlook in the wake of a recession remain.

The U.S. announced fresh sanctions on Iran late Wednesday in an attempt to pressure the Persian Gulf country to revive the 2015 nuclear accord. However, this shows no signs of doing anything but hardening the resolve in Tehran, making the addition of Iranian oil to the global market unlikely in the near term.

Elsewhere, the industry-funded American Petroleum Institute reported U.S. crude stockpiles rose by about 3.8 million barrels last week, and traders will look later in the session for the release of U.S. government data for confirmation of the state of domestic oil and fuel inventories.

By 02:05 AM ET, U.S. crude futures traded 0.1% lower at $98.45 a barrel, while the Brent contract fell 0.2% to $100.52.

Additionally, gold futures rose 0.4% to $1,743.50/oz, while EUR/USD traded 0.3% higher at 1.0212.

European Stock Futures Higher; ECB Minutes Loom Large

Related Articles

Dow futures Dip After Strong Jobs Report
Dow futures Dip After Strong Jobs Report By - Aug 08, 2022 1

By Oliver Gray - U.S. stock futures were trading lower during Sunday’s evening deals, with major benchmark averages coming off a positive week as stronger than...

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.
Comments (1)
Upendra Sada
Upendra Sada Jul 13, 2022 1:22
Saved. See Saved Items.
This comment has already been saved in your Saved Items
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
Continue with Google
Sign up with Email