FX.co ★ European Markets Poised for Lower Open

European equity markets were poised for a lower opening on Wednesday as investors anticipated the release of crucial US inflation data. A US Consumer Price Index (CPI) reading that surpasses expectations could negatively impact market sentiment by reducing the probability of near-term interest rate reductions by the Federal Reserve. Global market outlook was further influenced by developments in US-China trade relations. Both nations have agreed on a framework to implement the Geneva consensus, with China expected to remove restrictions on rare earth exports and the US contemplating easing limitations on the sale of advanced technology to China. In Europe, attention will also be directed towards the UK government’s "Spending Review" and the earnings report from Spanish retailer Inditex, both of which could affect the direction of regional markets. In premarket trading, futures for the Euro Stoxx 50 and Stoxx 600 had decreased by 0.2% and 0.3%, respectively.