European stocks set for lower open on inflation and oil
European equity futures pointed to a lower open Wednesday, extending losses for a third session. Oil prices rose on renewed Middle East fighting, while yields climbed on inflation and fiscal concerns; ECB hike is priced for next week.
European equity markets were headed for a lower open on Wednesday, extending losses for a third consecutive session as oil prices continued to rally amid renewed fighting in the Middle East, raising inflationary risks.
Global bond yields also climbed on mounting inflationary pressures and worsening fiscal conditions, reinforcing expectations that major central banks will need to raise interest rates soon.
Markets are currently pricing in a rate hike from the European Central Bank at its meeting next week.
Meanwhile, investors will assess French budget balance, Spanish unemployment change and Italian PPI data, while no major earnings releases are scheduled in Europe today.
In premarket trade, Euro Stoxx 50 and Stoxx 600 futures were both down about 0.4%.