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European Stock Futures Rise Ahead of Economic Data Release

European stock futures are poised to open higher on Wednesday, following a positive start to the year.


The DAX futures contract in Germany, CAC 40 futures in France, and FTSE 100 futures contract in the UK are all expected to rise by 0.3%. This comes ahead of the release of several economic data points, including French inflation figures and services PMI data for the Eurozone, employment numbers, and the minutes from the last Federal Reserve meeting in the US.

Oil Prices Fall on Concerns of Global Recession

Oil prices have fallen on Wednesday due to concerns that a global recession will hit economic activity and weigh on demand in 2023. These concerns were exacerbated by the head of the International Monetary Fund, who warned that 2023 would be a difficult year for much of the global economy as the main drivers of growth - the US, Europe, and China - are all experiencing weakening activity. By 02:00 ET, US crude futures were trading at $76.41 per barrel, a 0.7% decrease, while the Brent contract fell 0.6% to $81.62. Both contracts saw a drop of over 4% on Tuesday.

Gold Futures Rise as EUR/USD Trades Higher

Gold futures rose by 0.5% to $1,854.65 per ounce on Wednesday. Meanwhile, the EUR/USD traded 0.2% higher at 1.0568.

Market Sentiment Expects Quarter-Percentage Point Increase in Benchmark Rate

As investors await the release of economic data and the minutes from the last Federal Reserve meeting, market sentiment expects a quarter-percentage point increase in the benchmark interest rate at the Fed's next meeting. However, there may be divergence among policymakers, known as "doves" and "hawks," regarding the terminal rate or the highest level that the interest rate should reach. This will also interest investors as they analyze the report for clues on the direction of interest rates.