Investing.com – European stock markets rose on Wednesday as investors digested regional growth and inflation data ahead of the conclusion of the latest Federal Reserve meeting.
At 03:15 ET (0715 GMT), Germany was trading 0.4% higher, France was up 0.4% and the UK was up 0.6%.
UK economic growth stalled in April
Germany, harmonized with other European Union countries, grew 2.8% year-on-year in May, up from 2.4% in April.
“Inflation rates have increased slightly again, largely due to continued increases in service prices,” said Ruth Brand, president of the statistical office.
Prices for services in May were 3.9% higher than in the same month a year earlier, after rising 3.4% in April.
A cut in interest rates last week suggested inflation had fallen enough that monetary policy could be eased to support the struggling economy.
Evidence of weak growth in the wider region came from the UK, which was flat in April after rising 0.4% month-on-month in March.
The figures follow Tuesday’s labor market data, which showed a decline in employment and a rise in unemployment.
Fed meeting in focus
However, much of the day’s focus will be on the Federal Reserve’s latest statement later in the session, in which the central bank is expected to keep interest rates unchanged.
However, Fed policymakers are likely to abandon their forecast of three rate cuts this year when they announce their rate decision, as inflation has proven resilient this year.
Futures point to a rate cut of about 36 basis points this year, with the odds of a September cut pegged at about 50:50.
The widely popular US release will also follow later.
Oil surges amid optimism in demand
Crude oil prices rose on Wednesday, helped by a series of optimistic forecasts about global demand.
By 3:15 a.m. ET, WTI futures were trading 0.7% higher at $78.46 a barrel, with the contract up 0.5% at $82.34 a barrel.
Data released Tuesday showed U.S. oil inventories fell more than expected last week, raising hopes that U.S. fuel consumption is rising as the travel-heavy summer season begins.
Adding to the optimism was news that the US Energy Information Administration raised its forecast for global oil demand growth in 2024 to 1.10 million barrels per day from a previous estimate of 900,000 barrels per day.
The Organization of the Petroleum Exporting Countries maintained its forecast for strong growth in global oil demand for 2024, citing expectations for travel and tourism in the second half of the year.
The monthly report is also due out later this week, and the EIA will also release the official US weekly report.