European stock futures dips on upcoming Eurozone GDP numbers. Financial markets are anticipated to start the day slightly lower.
European Equity Markets eyes ECB and US Fed Meetings
As investors seek direction ahead of the publication of eurozone GDP statistics and the crucial central bank meetings next week, European equities are anticipated to begin slightly down on Thursday.
The CAC 40 futures Index declined 0.2%, the FTSE 100 index futures down 0.1%, While the DAX Index was down by 0.3% at 02:00 ET (06:00 GMT).
Before the policy-setting sessions of the ECB and the U.S. Fed that will take place the following week. European markets seem to be in a state of holding.
Precautions before meetings of the central bank
Since President Christine Lagarde stated earlier in the week. It is likely that more interest rate increases will be necessary to address the persistent inflation pressures, it is largely believed that the ECB will raise interest rates by a further 25 bps on Thursday.
The Fed’s future course of action is unclear, though. The consumer price index on Tuesday might be key. But last week’s job report showed the job market remains solid. Futures investors still give the Federal Reserve a 70% chance of suspending rate rises next week.
With a sudden 25 bpt increase on Wednesday, the Bank of Canada joined the RBA‘s path. And increased the doubt of the Fed’s decision to hold the line the following week.
Due: Eurozone data on GDP
Due: Eurozone data on GDPMarkets will likely pay close attention to the first Q1 updated gross domestic product statistics. Including the rate of joblessness for the eurozone.
According to the preliminary GDP report, the area had a 1.2% annual growth rate in Q1 of this year. A marked deceleration compared to the 1.8% increase recorded in the quarter preceding it.
Sandoz will provide further support for Novartis.
Thursday doesn’t have any big earnings reports planned, but Novartis (SIX: NOVN), a may get some attention. After announcing that its generics business Sandoz is anticipated to extend the pipeline. And create a further $3 billion on net revenue across the course of the next five years.
Nearly $9 billion in revenues were produced by Sandoz last year. And Novartis plans to split it off soon to zero in on the development of its patented prescription drugs.
Crude: After mixed U.S. stock levels, prices for oil decline.
Oil prices declined on Thursday as traders analyzed erratic gasoline supplies within the US. As well as enduring worries about the future worldwide demand.
Official statistics revealed that while petrol stocks increased for the very first occasion in the past five weeks. Crude oil reserves surprisingly decreased during that period. Considering that it started with the summer drive period. Which typically causes a substantial increase in U.S. gasoline demand, thus struck as a bit of a shock.
This week has been a wild one for the oil market. After the release of negative Chinese trade figures. And a slew of poor economic indicators from the US & Euroland. Hinting to weak demand worldwide. Initial gains on the basis of Saudi Arabia’s unexpected output reduction rapidly disappeared.
U.S. oil futures were trading 0.1% off at $72.47 per barrel by 2:00 ET. Whereas the Brent price was down one percent at $76.85.
