European equity markets were set to open lower on Wednesday as investors braced for the release of key US inflation data.
A stronger-than-expected US CPI reading could dampen sentiment by reducing the likelihood of near-term interest rate cuts by the Federal Reserve.
Global sentiment was also shaped by developments in US–China trade relations.
The two countries agreed on a framework to implement the Geneva consensus, with Beijing expected to lift restrictions on rare earth exports and Washington considering easing curbs on advanced technology sales to China.
In Europe, focus will also turn to the UK government’s “Spending Review” and earnings from Spanish retail giant Inditex, both of which could influence regional market direction.
In premarket trading, Euro Stoxx 50 and Stoxx 600 futures were down 0.2% and 0.3%, respectively.