European Markets Forecasted for Muted Open as Investors Eye Key Earnings and Data

The European markets are predicted to open with a lackluster performance today as investors prepare for significant earnings reports and economic data in the region. While Asia-Pacific indices increased on Tuesday due to positive stock market movements, U.S. futures remained unchanged last night following an optimistic start earlier this week. The Fed is set to reveal its interest rate decision next Wednesday; however, investors are most interested in Jerome Powell’s potential comments after a string of high inflation figures. Meanwhile, Bank of America analyst Ohsung Kwon anticipates good news for equities due to the anticipated end of manufacturing recession and strong job growth indicated by this week’s forthcoming data reports. Furthermore, Goldman Sachs revealed that shareholder returns are set to reach an all-time high owing to healthy balance sheets, attractive cash flow generation, and resilient dividends and buybacks. On Tuesday morning, sixteen S&P 500 stocks reached new fifty-two week peaks during trading sessions yesterday with nine of those securing record highs for the first time. While the U.K.’s FTSE 100 is expected to open lower by two points at 8,145, Germany’s DAX and France’s CAC are predicted to decrease marginally as well, while Italy’s FTSE MIB will rise thirteen points higher than yesterday’s close of trading. Earnings reports from AF-KLM, Stellantis, Capgemini, Mercedes, VW, Lufthansa, Santander, Caixabank, OMV, HSBC, Glencore and Whitbread will also be published today, in addition to preliminary Eurozone inflation data for April and the first-quarter Gross Domestic Product figures for the single currency region.