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European markets trade amid global growth and US inflation data

LONDON – European stocks are expected to open slightly lower on Wednesday as worries about global growth and inflation continue to disrupt market sentiment.

The British FTSE index should open 14 points down to 7,117, the German DAX 3 points down to 15,141, the French CAC 40 down 2 points to 6,541 and the Italian FTSE MIB 43 points down to 25,621, according to IG data.

The moderate opening of European markets comes as global trade remains volatile amid uncertainties about inflation, economic growth and skyrocketing energy prices.

U.S. equity futures were cut overnight on Tuesday as investors anticipated the start of the earnings season and September’s consumer inflation report, which is expected to have risen at the same rapid pace as ‘in August. Economists expect a rise of 0.3%, or an annualized rate of 5.3%, when the Consumer Price Index is released at 8:30 a.m. ET on Wednesday.

Investors are also bracing for a surge in US profits, with the big banks releasing their third quarter results this week; JPMorgan Chase, Goldman Sachs, Bank of America, Morgan Stanley, Wells Fargo and Citigroup are all due to report starting Wednesday.

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In the meantime, concerns about global growth remain in the foreground. On Tuesday, the International Monetary Fund said it was now less optimistic about the global economy for 2021, but said in its latest report that it still expected reasonable growth over the medium term.

In Asia-Pacific markets early Wednesday morning, mainland Chinese stocks were mixed as investors reacted to the release of Chinese trade data for September. The figures show that exports have exceeded expectations but that import growth has disappointed, according to data released by the customs agency on Wednesday.

Energy industry giants will be closely watched later Wednesday as CNBC’s Hadley Gamble hosts a panel with Russian President Vladimir Putin and CEOs of BP, TotalEnergies, ExxonMobil and Daimler at Russian Energy Week. Watch the event live at 1:00 p.m. Moscow time / 11:00 a.m. London time on CNBC.com.

Results updates from retailer ASOS and food delivery company Just Eat are expected on Wednesday. The data released includes the latest GDP estimate for the three months to August in the UK and the final consumer price inflation figures for Germany in September. In addition, the IEA’s World Energy Outlook 2021 report was released on Wednesday.

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