European stocks decline. Germany’s CPI stays high. As traders assess important German inflation figures in advance of the release of the U.S. Federal Reserve’s meeting notes, European stock markets are anticipated to start the day down on Wednesday.

At 2:00 ET (07:00 GMT), the FTSE 100 futures contract in the United Kingdom declined 0.4%, the CAC 40 futures in France down 0.1%, and the DAX futures contract in Germany traded 0.2 percent down.

European stocks take a hit from strong Economic activity

The most recent economic activity indicators from both Europe and the US indicate an unexpected uptick in business activity this month. But equities markets have responded negatively because this means inflation may be harder to control. Which strengthens the case for higher interest rates.

German consumer prices increased by 1.0 percentage points on a monthly basis in Feb after declining by 0.8percent the previous month, pushing the annual rate up to 8.7 percent versus January’s percent

Later in the afternoon, data on inflation in Italy is also anticipated; the country’s consumer price index is anticipated to continue to double figures yearly.

European stocks await US Fed meeting minutes

As recent statistics revealed solid retail sales, stronger-than-anticipated U.S. employment, and persistent inflation. Policymakers around the world will be closely examining the notes from the Fed’s meeting earlier this month, which are coming later on Wednesday.

Corporate quarterly Earnings

In the business sector, Rio Tinto (LON: RIO), a U.K.-listed miner more than reduced its dividend. While reporting a significant decline in overall income, iron ore prices are falling on slowing demand. Mainly from China, will be the focus.

Since the French food firm is able to hike costs in the face of increasing raw material and energy costs. Danone (EPA: DANO) announced greater than anticipated revenue growth in the fourth period of 2022.

Also, attention will be paid to the quarterly numbers of companies like Iberdrola (BME: IBE), Telefonica (BME: TEF), Ferrovial (BME: FER), and Lloyds Banking Group (LON: LLOY).

Asian Stocks drop after Wall Street

Wednesday saw a dip in Asian stocks after a slump in Wall Street. Markets as concerns about increasing interest rates and their intensifying grip on the world economy continue.

Tokyo’s popular Nikkei 225 index fell 1.4 percent to 27,102.21 in afternoon trading. S&P/ASX 200 Australia fell 0.3 percent to 7,314.50.

The Kospi in South Korea fell 1.6% to 2,419.15. Shanghai Composite was down 0.6% to 3,287.64, while Hong Kong’s Hang Seng fell 0.3 percent to 20,461.32.

To combat inflation, the central bank of New Zealand increased its benchmark interest rate by 0.5 percentage points to 4.75%. This boost comes amid significant economic suffering caused by a destructive typhoon. Causing, the potential to raise borrowing prices for customers, from credit cards to mortgages.

Treasuries, Yields, and Mortgage Rates

Rates and stock prices are so elevated that Morgan Stanley analysts claim that American stocks appear to be more pricey than they have been since 2007.

By late Friday, the yield on the 10-year Treasury, which influences the rates for mortgages as well as other significant loans, had increased to 3.95 percent from 3.82 percent.

The two-year yield increased from 4.62% to 4.72%, which is more influenced by Fed predictions. It’s getting close to reaching its peak since 2007.

Wall Street raises its predictions for how high the Federal Reserve would allow short-term interest rates to g higher in its efforts to combat inflation.

The Federal Reserve has already increased its benchmark overnight rate from essentially zero to a band of 4.50% to 4.75 percent

Crude oil and Forex Markets

Due to worries that increasing interest rates could negatively affect the economy of the world’s largest consumer and consequently reduce consumption, the price of oil dipped on Wednesday.

A day later than usual owing to the holiday on Monday. American Petroleum Institute figures on U.S. oil inventories are expected to show further buildup. Escalating concerns about demand.

U.S. oil futures were trading 0.6 percent lower at $75.94 a barrel by 2:00 ET, while the Brent price was down 0.5 percent at $82.68.

The price of gold futures also increased by 0.1% to $1,843.95/oz, and the EURUSD exchange rate moved up by 0.1% to 1.0659.

The US Dollar dropped in Asia today, in line with Treasury yields. Following a significant spike in both going into the North American close.  The Euro stabilized today after overnight losses.

Except for Pound, which increased after huge rises in the UK PMIs, the dollar saw increases from across the board in the G-10.

The final pieces of the jigsaw ahead of tomorrow’s Euro-wide inflation barometer will be provided by European CPI data. From a variety of regions today.

Due to the local Wage Price Index’s underperformance against the “big dollar” today—which came in at 3.3% as opposed to the expected 3.5%—the Australian Dollar is currently trailing behind.