Investing.com - European stock markets are expected to open higher Wednesday, ahead of the release of key activity data as well as eagerly awaited quarterly earnings from chip maker Nvidia.
Flash PMIs on the data slate
Eurozone and U.K. PMIs have been sliding in recent months, amid stagnation in the service sector coupled with a contraction in the manufacturing activity.
Today’s numbers could provide insights into whether the European Central Bank will hike interest rates again in September and if the Bank of England opts for a big rate increase given inflation remains highly elevated.
The eurozone consumer confidence release for the month of August is also expected later in the session, and is expected to show a small improvement from very weak levels.
Central bankers convene at Jackson Hole
The Fed’s Jackson Hole symposium at the end of the week is likely to keep trading within tight trading ranges this week, as investors warily await guidance of where the U.S. central bank goes next with its monetary policy.
While Fed Chair Jerome Powell’s speech on Friday will be the event’s highlight, European Central Bank President Christine Lagarde and Bank of England Governor Andrew Bailey are also scheduled to speak, as central bankers from around the globe convene in Wyoming.
Nvidia results after the close
The earnings season is gradually coming to a close in Europe, and the spotlight Wednesday is likely to be on the results from Nvidia (NASDAQ: NVDA ) after the closing bell on Wall Street.
The world’s most valuable chipmaker is at the center of global AI euphoria, tripling in value year-to-date, on the back of the rise of ChatGPT and other generative AI apps, virtually all of which are powered by its graphics processors.
Nvidia stunned the market in May, when a stellar forecast sent its stock soaring 24% in one day. The outsized gains this year creates the possibility of a sharp swing for the shares in either direction by the end of the week.
Crude edges higher after API inventories
Oil prices edged higher Wednesday, helped by another fall in U.S. crude stocks, but trading ranges remain tight ahead of the Jackson Hole symposium at the end of the week.
Crude inventories dropped by about 2.4 million barrels last week, according to data from industry body American Petroleum Institute Tuesday. This follows the massive draw of 6.2 million barrels a week earlier, suggesting overall supply conditions are still tight.
The weekly report from the Energy Information Administration , the statistical arm of the U.S. energy department, is due later Wednesday.
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