Investing.com - European stock markets are expected to open lower Wednesday as investors bemoan the lack of a deal to raise the U.S. debt ceiling ahead of the release of key economic data.
U.S. President Joe Biden and House Speaker Kevin McCarthy held “productive” talks on Monday over raising the U.S. government's $31.4 trillion debt ceiling, but there was little sign of progress yesterday.
There is now just over a week before a possible first-ever U.S. government default with U.S. Treasury Secretary Janet Yellen warning that it’s now “highly likely” that the U.S. government will run out of sufficient cash as soon as June 1.
Back in Europe, Germany’s Ifo survey of current business conditions, due later in the session, will be closely watched for clues of sentiment in the region’s largest economy.
U.K. inflation slowed in April, with the annual figure coming in at 8.7%, still above expectations, from 10.1% in March as the Bank of England’s prolonged hiking cycle began to have an impact.
However, the highlight will be from Marks & Spencer (LON:MKS), with the retail giant likely to post a decline in full-year pretax profit as it cuts margins to keep its food prices competitive.
Oil prices rose Wednesday after industry data registered a sharp drop in U.S. inventories, pointing to tighter supplies as the U.S. driving season draws nearer.
Data from the American Petroleum Institute showed that crude stocks fell by about 6.8 million barrels in the week ended May 19, while gasoline inventories dropped by about 6.4 million.
If confirmed by official data later in the session, gasoline stocks would have declined for the third consecutive week to their lowest pre-Memorial Day levels since 2014.
Both benchmarks gained on Tuesday after Saudi Arabia's energy minister warned short sellers to "watch out", raising the possibility that a group of top producers will cut production once more when they meet in early June.