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

European Stock Futures Lower; U.K. Consumer Inflation Soars

Stock MarketsNov 17, 2021 07:28
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Peter Nurse 

Investing.com - European stock markets are expected to open lower Wednesday after disappointing Japanese trade data, while a U.K. inflation release pointed to a Bank of England rate hike in December.

At 2:05 AM ET (0705 GMT), the DAX futures contract in Germany traded 0.1% lower, CAC 40 futures in France dropped 0.2% and the FTSE 100 futures contract in the U.K. fell 0.5%.

U.K. consumer prices rose 4.2% on the year in October, data showed earlier Wednesday. This represents a sharp jump from 3.1% the previous month and is more than double the central bank’s medium term target of 2%. Following on from Tuesday’s strong employment data, this release may well provoke an interest rate hike from the Bank of England next month. 

The equivalent inflation data from the Eurozone is due later in the session, but the European Central Bank has guided towards a more patient stance in terms of rate hikes.

The major equity indices in Europe received a negative handover from Asia, after Japan's exports snapped seven months of double-digit growth in October, growth slowing to only 9.4% year-on-year.

Global supply constraints hit Japan's major manufacturers, particularly the country’s car industry. Such trends have already been evidence in the Eurozone, where German industrial output and exports have weakened sharply in the last three months. 

In corporate news, quarterly earnings come from the likes of Sage (LON:SGE), British Land (LON:BLND) and Experian (OTC:EXPGF). 

Elsewhere, Nokia (NYSE:NOK) will be in focus after the Finnish telecommunications company said it plans to launch a cloud-based software subscription service.

Additionally, German auto giant Volkswagen (DE:VOWG_p) announced plans to double staff numbers at its charging and energy division, part of its aim to take on Tesla (NASDAQ:TSLA) in a key electric vehicle battleground: power infrastructure. The company's management, which has flagged the need for widespread job cuts at its conventional engine operations in recent years, is under pressure to show that the energy transition can create jobs as well as destroy them.

Crude prices weakened Wednesday after the release of a report on U.S. inventories increased the pressure on the Biden administration to tap its strategic reserves.

The industry-funded American Petroleum Institute reported U.S. crude inventories rose 655,000 barrels last week, but gasoline stocks fell by 2.8 million barrels, more than expected, an indication that final demand is still reasonably strong despite prices being at a seven-year high nationwide and at an all-time high in key markets such as California.  

A coordinated release of strategic oil reserves to dampen oil prices was one of the issues reportedly discussed by Presidents Joe Biden and Xi Jinping on their telephone call on Monday.  

Official figures from the Energy Information Administration are due later Wednesday.

By 2:05 AM ET, U.S. crude futures traded 0.7% lower at $79.22 a barrel, while the Brent contract fell 0.6% to $81.93. 

Additionally, gold futures rose 0.2% to $1,857.10/oz, while EUR/USD traded 0.2% lower at 1.1303.

 

European Stock Futures Lower; U.K. Consumer Inflation Soars
 

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 Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
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?
 
Post
 
Replace the attached chart with a new chart ?
1000
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 Investing.com'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
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email