Europe midday: Stocks in the red; Fed, OPEC and ECB eyed

European stocks fell on Wednesday amid mixed Chinese data, a warning from the OECD, lower oil prices and caution ahead of some key events.

At midday, the benchmark Stoxx Europe 600 index was down 0.9%, Germany’s DAX was 0.7% lower and France’s CAC 40 was off 0.8%.

At the same time, oil prices retreated ahead of weekly US crude inventory data and Thursday’s OPEC meeting. West Texas Intermediate was down 1.6% to $48.31 a barrel while Brent crude was 0.1% weaker at $49.69.

“Don’t get hung up on this meeting though - there will be no production cuts announced, let alone agreed upon, and there’s little else to be gleaned from OPEC these days in terms of indications of future pricing for oil,” said Accendo Markets’ Mike van Dulken.

“Better to concentrate on the global growth outlook and risk appetite, and oil’s correlation with stock indices. In that sense, keep an eye on the USD and the US equity markets ahead of the FOMC mid-month.”

Investors were awaiting some key events this week, with the OPEC meeting and the European Central Bank rate announcement due on Thursday and the US non-farm payrolls report on Friday. They were also looking a little further ahead.

"June brings some of the most critical market events of the year. The Federal Reserve decision on 15th June is potentially a key risk for global markets, followed by the EU referendum vote on the 23rd, which has huge ramifications for the UK and Europe,” said Rebecca O’Keeffe, head of investment at stockbroker Interactive Investor.

“With uncertainty about both the Fed and EU referendum increasing and oil prices falling for a fourth day, investors have become more cautious, with European equity markets weaker as investors struggle to find reasons to invest.”

China's official manufacturing purchasing managers' index printed at 50.1 in May, unchanged from the previous month.

However, the Caixin manufacturing PMI remained below the 50.0 that separates contraction from expansion for the 15th straight month, dropping to 49.2 in May from 49.4 in April.

China's official non-manufacturing PMI fell to 53.1 in May from 53.5 in April, according to the National Bureau of Statistics said.

Markit’s final Eurozone manufacturing purchasing managers’ index came in at 51.5 in May, in line with the flash estimate but down a touch from April’s 51.7.

This marked the second weakest reading since February 2015 as inflows of new business from both domestic and export markets continued to rise at lacklustre rates.

Meanwhile, a warning from the Organisation for Economic Cooperation and Development undermined sentiment on Wednesday, after it said that a vote by Britain to the leave the European Union could have “substantial negative consequences” for the UK and the global economy.

In corporate news, Elekta shares slid after the Swedish care company reported weaker-than-expected first-quarter earnings.

RSA Insurance edged lower after announcing the completion of the sale of its operations in Mexico.

FTSE 100 building materials supplier Wolseley was under the cosh after it said in a third quarter trading update that recent revenue growth trends have been weaker.

Ahold bucked the trend, however, racking up solid gains as the Dutch supermarket chain’s first-quarter results beat estimates.

Still to come on the data front, US ISM manufacturing and construction spending figures are at 1500 BST.