Europe open: Stocks waver ahead of ECB, OPEC
Updated : 08:53
European stocks wavered in early trade as investors exercised caution ahead of the European Central Bank rate announcement and the OPEC meeting in Vienna.
At 0850 BST, the benchmark Stoxx Europe 600 index was flat, Germany’s DAX was down 0.3% and France’s CAC 40 was 0.2% lower.
At the same time, oil prices were just a touch higher ahead of the meeting of the Organisation of the Petroleum Exporting Countries later in the day. West Texas Intermediate was up 0.1% to $49.04 a barrel and Brent crude was 02% firmer at $49.84.
Lee Wild, head of equity strategy at stockbroker Interactive Investor, said: “It's all eyes on Vienna Thursday. Both OPEC and the ECB meet in the Austrian capital, but neither is expected to announce market-moving news. It's highly unlikely the Saudis will convince Iran to accept a cartel-wide production ceiling. After years in the wilderness, Tehran is keen to grab market share.
“European policymakers, meanwhile, have enough on their plate implementing measures agreed in March. At best, there is an outside chance that a surge in the oil price to $50 may trigger a rare upgrade to inflation forecasts.”
Societe Generale does not expect any policy action from the ECB, but said a “small, and rare” upward adjustment to the staff projections was likely.
In corporate news, Johnson Matthey rallied in London after the specialty chemicals firm posted a drop in full-year profit that met analysts’ expectations and expressed confidence over the current year.
Austrian steelmaker Voestalpine racked up healthy gains as its full-year net profit came in ahead of analysts’ expectations.
The European Central Bank rate announcement is at 1245 BST.
In the US, initial jobless claims are at 1330 BST. The ADP employment report at 1315 BST is likely to be watched more closely, however, as it’s generally considered a pre-cursor to the all-important non-farm payrolls on Friday.
If the payrolls report surprises to the upside, it could well underpin the argument for a US rate hike in a couple of weeks.