Stock Market

European stock futures are rising, helped by China’s industrial recovery.

In advance of a flood of economic data, European stock markets are anticipated to start the day higher on Wednesday thanks to encouraging signals from China’s crucial manufacturing sector.

At 2:00 p.m. ET (07:00 p.m. GMT), the FTSE 100 futures contract in the United Kingdom increased by 0.3%, the CAC 40 futures in France increased by 0.3%, and the DAX futures contract in Germany moved 0.2% higher.

In February, China’s manufacturing activity increased at its fastest rate in more than a decade as the country’s recovery picked up steam following the easing of its stringent anti-COVID regulations.

According to statistics released on Wednesday, the closely watched manufacturing Purchasing Managers’ Index increased to 52.6 in February from 50.1 in January.

Even stronger results were seen in China’s non-manufacturing PMI, which increased to 56.3 in February from 54.4 the previous month.

This report of expansion in one of Europe’s major export markets is expected to support European markets on Wednesday.

Inflation data for the North Rhine-Westphalia region, Germany’s industrial heartland, showed an annual rise to 8.5% in February from 8.3% the previous month, suggesting that gains are likely to be constrained.

According to statistics released on Wednesday, the closely watched manufacturing Purchasing Managers’ Index increased to 52.6 in February from 50.1 in January.

Even stronger results were seen in China’s non-manufacturing PMI, which increased to 56.3 in February from 54.4 the previous month.

This report of expansion in one of Europe’s major export markets is expected to support European markets on Wednesday.

Inflation data for the North Rhine-Westphalia region, Germany’s industrial heartland, showed an annual rise to 8.5% in February from 8.3% the previous month, suggesting that gains are likely to be constrained.

Tuesday’s inflation data for France and Spain both came in higher than anticipated, indicating that the European Central Bank will likely keep raising borrowing rates going forward.

Throughout the session, investors will have access to additional economic statistics, such as the German unemployment rate and S&P global manufacturing PMIs for the Eurozone, Germany, and France.

In the corporate sector, earnings from British home builder Persimmon (LON:PSN) will be in the spotlight, while Cellnex (BME:CLNX), Europe’s largest mobile phone tower operator, revealed a narrowing of its full-year net loss while meeting its core earnings goal.

The stronger-than-expected figures on Chinese manufacturing activity on Wednesday increased confidence in the recovery of the biggest crude importer in the world.

The United States, the world’s largest oil user and producer, has seen another sharp increase in its crude stockpiles, but this has been obscured.

The American Petroleum Institute reported that last week’s stock increase was 6.2 million gallons. Later in the session, the official U.S. government data are expected.

By 2:00 p.m. ET, Brent oil futures were up 0.6% to $83.98 a barrel, while U.S. crude futures were up 0.6% at $77.53 a barrel.

Likewise, gold futures increased by 0.3% to $1,841.70/oz, and the EUR/USD exchange rate increased by 0.3% to 1.0607.

 

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