FX.co ★ European Stocks Set for Flat Open

European equity markets were set for a muted open on Wednesday, as investors remained cautious in the face of elevated oil prices and awaited a key US inflation report. Sentiment was restrained by skepticism that a deal to reopen the Strait of Hormuz can be reached soon, despite assurances from Pakistan’s defense minister that Washington and Tehran are moving closer to an agreement.

In Europe, investors will scrutinize final July inflation data from Germany and Italy, as well as earnings from major corporates including E.ON, Hannover Rück, M&G and Brenntag, among others. Meanwhile, Dutch lender ABN Amro posted quarterly results that beat expectations, supported by higher fee income and stronger lending revenues. The performance prompted the bank to upgrade its outlook for its largest revenue stream.

In premarket trading, futures on the Euro Stoxx 50 and Stoxx 600 were flat to slightly lower.