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European markets head for higher open as investors await euro zone inflation data

Soegeefx AppsEU MarketEuropean markets head for higher open as investors await euro zone inflation data

Holly Ellyatt

European markets are heading for a higher open on Wednesday as regional markets await the latest inflation data from the euro zone in November.

Elsewhere overnight, Asia-Pacific shares were mostly higher on Wednesday as the reading for China’s November factory activity fell short of expectations, dropping to the lowest reading since April.

Chinese health officials on Tuesday announced measures to boost vaccination among the elderly, an indicator seen as important for reopening the economy. When asked if recent unrest would lead to a shift in its zero-Covid policy, they said they were “closely watching the virus” for developments.

Meanwhile, U.S. stock futures inched up Wednesday morning as investors await a speech later today from Federal Reserve Chair Jerome Powell that may give further insight into future interest rate hikes.

CNBC Pro: Goldman Sachs’ Currie says oil stocks are trading ‘far below’ their long-term trend

Goldman Sachs’ Global Head of Commodities Research Jeff Currie told CNBC that historically, oil stocks have traded at a much higher premium to crude oil prices compared to current price levels.

For instance, the price gap between SPDR Oil & Gas ETF and ICE Brent Crude futures contract was about $66.60 on Tuesday. That’s significantly lower than the $104 gap recorded at the start of January 2017, according to Koyfin data, as the chart below shows.

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Currie told CNBC what he thinks could happen next to energy stocks.

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European markets: Here are the opening calls

European markets are heading for a higher open on Wednesday as regional markets await the latest inflation data from the euro zone in November.

The U.K.’s FTSE index is expected to open 23 points higher at 7,536, Germany’s DAX up 68 points at 14,414, France’s CAC up 29 points at 6,697 and Italy’s FTSE MIB up 119 points at 24,597, according to data from IG.

Data releases include preliminary inflation figures for the single currency area, France’s and Italy’s final third quarter gross domestic product readings and Ireland’s unemployment rate for November.

— Holly Ellyatt

Source : CNBC

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