© Reuters.
By Peter Nurse
Investing.com – European stock markets are expected to open higher Wednesday, building on recent gains even as rampant U.K. inflation pointed to further aggressive monetary tightening ahead.
At 02:00 ET (06:00 GMT), the contract in Germany traded 0.3% higher, in France climbed 0.5% and the contract in the U.K. rose 0.3%.
The , already at its highest level for decades, jumped to 10.1% for the month of September, likely pressuring the to increase interest rates more aggressively.
The move earlier this week by Britain’s new finance minister Jeremy Hunt to row back on Prime Minister Liz Truss’s unfunded tax-cutting plans had raised the prospect of the central bank slowing its interest rate hikes.
The equivalent data from the Eurozone are scheduled for release later in the session, and are also expected to hit double figures, a sharp rise from August’s annual 9.1%.
The is widely expected to lift its key interest rates by 75 basis points when it next meets at the end of this month, adding to the combined 125 basis points of increases already announced since July.
Global equities have bounced strongly over the last few days, helped by positive earnings reports and receding worries around systemic risk from Britain’s debt markets.
In corporate news, Nestle (SIX:) reported better-than-expected nine-month sales and raised its full-year guidance as the world’s largest packaged food company successfully passed on price increases to customers.
Just Eat Takeaway (AS:), Europe’s largest meals delivery company, announced an underlying profit in the third quarter, sooner than previously forecast, after cutting expenses on delivery costs and operations.
ASML (AS:), a key equipment supplier to computer chip manufacturers, reported better-than-expected third-quarter and profit, and record new bookings.
Oil prices rose Wednesday, climbing from a two-week low, helped by signs of consistent U.S. demand, the largest consumer in the world.
U.S. crude oil stocks fell by about 1.3 million barrels for the week ended Oct. 14, according to data from the figures, released Tuesday, suggesting oil consumption in the U.S. remains steady despite headwinds from rising and interest rates.
Official figures from the are due later in the session.
By 02:00 ET, traded 0.9% higher at $82.74 a barrel, while the contract rose 0.3% to $90.30.
Both contracts fell substantially on Tuesday after the White House revealed plans to release 15 million barrels of oil from its Strategic Petroleum Reserve by December.
Additionally, fell 0.2% to $1,651.75/oz, while traded 0.2% lower at 0.9835.
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