© Reuters
By Peter Nurse
Investing.com – European stock markets edged higher Wednesday, rebounding at the start of a new month although concerns about the strength of the region’s economic recovery remain.
By 3:35 AM ET (0735 GMT), the in Germany traded 0.6% higher, the in France rose 0.4% and the U.K.’s climbed 0.2%.
European equities have started the month of June on a positive note, rebounding after the previous month ended with sharp losses–the DAX closed down 1.3% and the CAC 40 dropped 1.4%–as jumped 8.1% year-on-year in May, a record high.
This stoked concerns that the European Central Bank, which meets next week, will be forced to move quickly to raise interest rates, strengthening the case for an outsized interest rate hike to start.
The impact of soaring inflation is already being felt, as slumped 5.4% on the month in April as consumers felt the pinch of higher prices, especially for food, and retailers faced supply problems from the China lockdowns.
Next up is the release of May survey data for the Eurozone, amid fears that the rampant inflation and supply chain issues will still impact confidence in this key sector.
Data earlier Wednesday showed China’s factory activity shrank less sharply in May than expected, with the rising to 48.1 in May, improving from 46.0 in April, a 26-month low.
In corporate news, Deutsche Bank (ETR:) stock rose 0.8% after the German lender replaced Asoka Woehrmann, the chief executive of DWS, its listed asset management arm, within hours of German police raiding its headquarters in connection with a greenwashing investigation.
BT Group (LON:) stock edged 0.4% higher despite Britain’s competition watchdog starting to investigate the U.K. telecom group’s deal to combine its sports broadcasting business with Warner Bros Discovery (NASDAQ:).
Vivendi (EPA:) stock rose 1.2% after the French group’s CEO Arnaud de Puyfontaine told the Italian daily la Repubblica that Telecom Italia’s (BIT:) top investor would oppose a sale of the Italian phone group’s fixed network if it undervalues the asset. Telecom Italia’s stock fell 0.6%.
Oil prices rose Wednesday, still supported by the decision of the European Union to substantially reduce oil imports from Russia as well as China ended its COVID-19 lockdown in Shanghai.
However, gains have been capped by a that some producers are thinking of suspending Russia’s participation in the output deal agreed by the Organization of the Petroleum Exporting Countries and allies.
Exempting Russia, as the Western sanctions have hit the country’s ability to lift production, could pave the way for other OPEC members, mainly Saudi Arabia and the United Arab Emirates, to produce more, potentially bringing down prices.
The industry-funded is scheduled to reveal its weekly estimate of U.S. crude oil supply later in the session.
By 3:35 AM ET, futures traded 1.4% higher at $116.22 a barrel, while the contract rose 1.3% to $117.11.
Additionally, fell 0.7% to $1,834.80/oz, while traded 0.1% lower at 1.0726.
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