top of page

European stock Futures goes up; U.S. inflation data in focus

European stock markets are expected to rise up at the open Tuesday, with investors concentrating on the release of U.S. inflation data later in the session and what it means for interest rate expectations. From one tightening after another of his Zero-COVID policy since October, China’s president has been forced to loosen some of the hatches to the lockdowns in major Chinese cities amid widespread and rare public protests.

At 02:00 ET (07:00 GMT), the DAX futures contract in Germany traded 0.2% higher, CAC 40 futures in France climbed 0.4% and the FTSE 100 futures contract in the U.K. rose 0.2%.

Global stock markets are largely in a holding pattern ahead of the U.S. consumer price index for November, which is expected to show a moderation in the annual pace, to 7.3% from 7.7% the prior month, while the core inflation remains steady at 0.3% month-on-month.

Investors generally remain very wary about the risks of further increases in borrowing costs hurting economies, and signs of inflation remaining at elevated levels could prevent the Federal Reserve from beginning to slow its aggressive rate rises when it concludes its latest policy-setting meeting on Wednesday.

In corporate news, National Grid (LON: NG) will be in the spotlight after it reportedly canceled standby notices for two coal units late Monday, helped by high nuclear output and wind speeds, after earlier in the day asking for help as a cold snap gripped the U.K.

Crude oil prices have extended the previous session’s gains on continued concerns about tightening supply as the Keystone pipeline between the U.S. and Canada remained closed.

Keystone has remained shut since a massive leak in the U.S. state of Kansas was reported on Dec. 7, preventing around 620,000 barrels per day of Canadian crude from entering the United States, the largest consumer in the world.

The pipeline closure is likely to be reflected in the latest U.S. crude inventories, with the latest numbers from the industry body American Petroleum Institute due later Tuesday ahead of the official data from the Energy Information Administration on Wednesday.

Comments from China’s ambassador to the U.S. late Monday that his country will continue to relax its strict COVID-19 measures have also helped the tone.


bottom of page