European stock futures Higher on Powell speech. As traders reflected on remarks made by Federal Reserve Chair Jerome Powell ahead of another significant corporate earnings. European stock markets are seen broadly higher on Wednesday.
European Stocks current scenario
The DAX futures contract in Germany traded 0.7% higher at 02:00 ET (07:00 GMT), while the FTSE 100 futures contract in the U.K. increased 0.6% and the CAC 40 futures in France decreased 0.1%.
Wall Street, which closed decisively up on Tuesday after Federal Reserve Chair Jerome Powell adopted a less aggressive tone than anticipated at a speech at the Economic Club of Washington, D.C. It is expected to set the mood for European stocks.
After a string of abrupt interest rate increases through 2022, Powell claimed that the United States was suffering disinflation. Markets have seen his remarks positively as they search for indications that the Fed is about to pause its rate rises. Despite the fact that Powell also cautioned that additional rate increases are still needed.
The positive U.S. jobs report on Friday, that was thought to be providing the Fed greater economic leeway to keep raising interest rates, was followed by his speech.
European Stocks looking for the quarter-end results season is still in full swing
Despite forecasting a 64% decline in yearly earnings in 2022, Societe Generale SA (EPA: SOGN), France’s third-largest bank, announced a higher-than-expected profit in the final quarter. This was made possible by the strong performance of its business and investment banking segment.
The Norwegian oil and gas giant Equinor (OL: EQNR) announced a record adjusted operating profit of $74.9 billion for 2022, more than doubling its prior high.
Earnings from companies like Credit Agricole SA (EPA: CAGR), Total Energies (EPA: TTEF), Maersk (CSE: MAERSKb), and Vestas Wind Systems are also expected on Wednesday (CSE:VWS).
Crude oil Inventory Estimates
Contrary to estimates of increase of 2.5 million barrels, the industry association said that oil stocks decreased by roughly 2.2 million barrels in the week ending February 3.
Later during the session, the U.S. Energy Information Administration is expected to provide the official inventory data.
U.S. crude futures were trading 0.4percent up at $77.43 a barrel as of 2:00 ET, while the Brent contract increased 0.2percent to $83.84 per barrel. To date this month, these contracts have increased by almost 4%.
Gold takes a high ground
The price of gold futures also increased by 0.2percent to $1,887.90/oz, and the EUR/USD traded 0.1% stronger to 1.0727.
