LONDON – European stocks were on the mute Wednesday morning as investors in the region waited for major hints from eurozone purchasing managers.
European markets are awaiting the first reading of activity in the services and manufacturing sectors of the euro zone and the United Kingdom for June. The “flash” or preliminary data – a useful indicator of economic health in two key sectors of the region – for the single currency area is expected at 9 am London time.
Europe’s cautious opening comes after an exceptional start to the week for global equities. U.S. stock index futures were slightly higher in early morning trading on Wednesday, after the S&P 500 closed at a new high on Tuesday, and Asia-Pacific stocks were significantly higher in trading on Wednesday.
Market sentiment appeared to be boosted when Federal Reserve Chairman Jerome Powell testified before the House of Representatives on Tuesday and reiterated that inflationary pressures will be temporary.
In prepared remarks released Monday evening, the central bank chief reiterated that the economy is growing, although the threat of the pandemic is still present.
There was no major movement in the stock price at the start of trading. Swiss online pharmacy Zur Rose Group fell 3.4% to the low of the Stoxx 600, while French brewer Pernod Ricard added 2.4% to lead the index after raising its profit forecast
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– CNBC’s Pippa Stevens contributed reporting for this story.