© Reuters.  © Reuters.

By Peter Nurse

Investing.com - European stock markets are seen opening a little lower Wednesday, as investors cautiously await the Federal Reserve for guidance on the economy.

At 2:05 AM ET (0605 GMT), the DAX futures contract in Germany traded 0.1% lower, CAC 40 futures in France dropped 0.3%, while the FTSE 100 futures contract in the U.K. underperformed, falling 1.1%, overturning Tuesday’s oversized gains.

Equity markets have largely regained their pose after last week’s turmoil, mainly surrounding the tech sector, helped by upbeat economic data from China and the U.S., the two largest economies in the world. Recent news out of Europe has also been encouraging, with Germany’s ZEW sentiment index – the first of the big gauges of sentiment to be released this month – defying expectations for a fall.

Investors are looking to central banks for direction, and in particular the U.S. Federal Reserve which concludes a two-day policy meeting later Wednesday, the first since adopting a more tolerant stance on inflation in August.

The focus of the meeting “will be at the operational consequences of Average Inflation Targeting,” wrote Nordea’s Martin Lund, in a note. “As the Fed needs to show full AIT commitment, we see a clear risk of a hike in the current QE pace.”

The Fed is due to announce its decision at 2 PM ET (1800 GMT), followed by a news conference from Chairman Jerome Powell.

The Bank of Japan and the Bank of England also announce their respective policy decisions on Thursday.

Economic data in Europe center Wednesday around U.K. inflation numbers, with the country’s CPI climbing 0.2% on the year in August, a touch better than the 0.1% widely expected.

In corporate news, ENI (MI:ENI) will be in focus after the Italian oil-and-gas major said late Tuesday that it has agreed to pay an interim dividend for 2020.

Additionally, Geberit (SIX:GEBN) said Wednesday that it is about to start a buyback program of up to 500 million Swiss francs, starting on Thursday and lasting for a maximum of two years.

Oil prices rose Wednesday after the American Petroleum Institute detailed a big drop in U.S. stockpiles and Hurricane Sally continued to disrupt offshore production in the Gulf of Mexico.

The API recorded a 9.5 million-barrel draw for the week ending Sept. 11, against forecasts of a build of 2 million. The U.S. Energy Information Administration is due to release its own data later in the day.

U.S. crude futures traded 1.5% higher at $38.87 a barrel, while the international benchmark Brent contract rose 1.3% to $41.06. Both benchmarks rose by more than 2% during the previous session,

Elsewhere, gold futures rose 0.1% to $1,966.65/oz, while EUR/USD traded largely flat at 1.1843.

Other relevant articles 
[2020-09-15 10:10:03] European Stocks Mixed; U.K. Outperforms After Economic Data
[2020-09-15 08:40:04] European Stocks Mixed Ahead of Central Bank Meetings
[2020-09-14 11:15:23] European healthcare stocks hit by Trump drug order
[2020-09-14 10:50:22] European Stocks Gain; Vaccine News Helps
[2020-09-14 08:25:22] European Stocks Seen Higher Amid Fresh Vaccine Hopes
[2020-09-12 13:25:15] European economy is recovering better than we had feared: Scholz
[2020-09-11 11:50:13] European countries call for EU stablecoin regulation
[2020-09-11 09:45:11] European shares flat, Brexit tensions simmer
[2020-09-11 08:30:13] European Stocks Mixed; ECB Offers Optimistic Outlook
[2020-09-10 10:10:07] European Stocks Lower Ahead of ECB Meeting
[2020-09-10 10:00:09] European shares inch higher with eyes on ECB
[2020-09-10 08:30:07] European Stocks Mostly Higher; ECB Looms Into View
[2020-09-09 18:30:08] European shares bounce back, focus shifts to ECB meeting
[2020-09-09 10:15:07] European Stocks Higher; Investors Look to The ECB
[2020-09-09 08:40:06] European Stocks Seen Lower; U.S. Tech Rout Weighs
[2020-09-08 18:20:28] European equities sapped by Brexit fears, energy and tech stocks slide
[2020-09-08 12:45:03] U.S., European COVID vaccine developers make pledge to uphold...
[2020-09-08 10:40:02] European Stocks Lower; Potential U.S. Tech Selloff Weighs
[2020-09-08 08:20:02] European Stocks Seen Higher; ECB Meeting Looms Large
[2020-09-07 10:00:23] European Stocks Gain; ECB Meeting in Focus
[2020-09-07 09:35:22] European shares start week on firm footing, vaccine developments...
[2020-09-07 08:30:22] European Stocks Seen Higher; DAX Weak After Industrial Production Data
[2020-09-04 10:10:10] European Stocks Edge Higher; Bank Consolidation Talk Helps
[2020-09-04 09:40:10] European shares open lower on weak tech, banks rise on merger...
[2020-09-04 08:15:11] European Stocks Seen Mostly Lower; U.S. Payrolls Eyed
[2020-09-03 11:10:06] Major crypto exchange Binance joins European blockchain industry...
[2020-09-03 09:55:06] European Stocks Up on French Stimulus Plans; Capgemini Gains
[2020-09-03 09:35:06] European shares open higher ahead of service-sector data
[2020-09-03 08:40:16] European Stocks Mixed Despite French Stimulus Plans
[2020-09-03 04:30:07] Dollar Inches Downwards, Wait Begins for U.S., European Economic...
[2020-09-02 10:30:07] European Stocks Gain; Pernod Helped by Index Rebalancing
[2020-09-02 09:30:07] European shares open higher after four straight sessions of...
[2020-09-02 08:30:19] European Stocks Seen Higher Amid Global Recovery Hopes
[2020-09-01 09:25:02] European shares open higher ahead of manufacturing, inflation...
[2020-09-01 08:30:03] European Stocks Seen Largely Higher, Helped by Chinese Recovery
[2020-08-31 16:20:22] European Equities Set for Biggest August Gain Since 2009
[2020-08-31 09:40:21] European shares open stronger on oil gains, China optimism
[2020-08-28 09:55:10] European Stocks Slip as Weak Economic Data Hit Recovery Hopes
[2020-08-28 09:50:10] European stocks slide as heavyweight tech, healthcare drag
[2020-08-28 09:35:24] Amazon orders 1,800 Mercedes-Benz electric vans for European...
[2020-08-28 08:30:11] European Stocks Seen Higher, Helped by New Fed Inflation Stance
[2020-08-28 08:20:14] Distressed funds eye European companies as virus support schemes ease
[2020-08-27 10:10:06] European Stocks Drift Ahead of Powell Speech; Rolls-Royce Slumps
[2020-08-27 09:45:25] European stocks lower ahead of Powell speech, banks weigh
[2020-08-27 08:40:20] European Stocks Seen Lower Ahead of Key Powell Speech
[2020-08-26 10:05:06] European Stocks Mixed Amid Caution Over Covid-19 2nd Wave
[2020-08-26 09:45:06] European stocks nudge higher as stimulus hopes outweigh virus woes
[2020-08-26 08:25:06] European Stocks Mixed; Investors Wait for Powell Speech
[2020-08-25 10:00:15] European Stocks Gain on U.S.-China Trade Talks; DAX Helped by GDP Revision
[2020-08-25 09:40:02] U.S.-China trade optimism boosts European stocks, DAX at month high
[2020-08-24 10:00:24] Coronavirus treatment hopes boost European stocks at open
[2020-08-21 09:40:10] European shares struggle to gain, PMI data awaited
[2020-08-19 09:40:10] European shares weaken after Wall Street rally as growth worries persist
[2020-08-18 09:40:03] European shares fall as U.S.-China tensions, virus cases rise
[2020-08-13 13:30:07] Airlines cut European recovery outlook as pandemic drags on
[2020-08-13 07:45:07] European battery makers power up for a green recovery
[2020-08-12 09:50:07] Telecoms lift European stocks after Sunrise buyout offer
[2020-08-12 05:20:06] Exclusive: European banks face indigenous calls to end Amazon oil...
[2020-08-11 09:35:02] European stocks jump as carmakers, HelloFresh rally
[2020-08-10 16:30:23] U.S., European Commission begin discussions enhanced privacy...
[2020-08-10 09:30:22] China data drives early gains in European stocks
[2020-08-06 09:15:08] TikTok to open first European data centre in Ireland
[2020-08-05 13:20:07] European funds post €706.2 billion trading loss in first half: Lipper
[2020-08-05 09:40:07] European shares lifted by positive earnings reports
[2020-08-04 16:10:04] As The USD Stumbles, Now Could Be A Good Time To Buy European ETFs
[2020-08-04 16:00:08] Opening Bell: Tech Rally Fizzles On Poor European Earnings; Bonds Bounce
[2020-08-03 09:40:22] European stocks inch higher, banks slide after HSBC warning
[2020-07-31 16:20:11] SAP, Deutsche Telekom to build corona app gateway for European...
[2020-07-31 10:40:10] Nokia, BNP earnings prop European stocks as growth worries linger
[2020-07-30 14:40:28] Opening Bell: U.S. Futures, European Stocks Fall As Earnings, Data Disappoint
[2020-07-30 13:55:07] Activist fund TCI lodges complaint against Italy with European...
[2020-07-30 12:25:07] Facebook ad boycott organizers ask European firms to join...
[2020-07-30 12:25:07] Facebook ad boycott organizers ask European firms to join...
[2020-07-30 09:50:06] European shares slip as weak earnings offset Fed promise
[2020-07-30 03:20:06] Exclusive: European software startup Infobip raises over $200...
[2020-07-29 13:30:09] European Analysts Face Earnings ?Tsunami’ in Work-from-Home Era
[2020-07-29 10:00:11] European shares flat, investors sift through earnings deluge
[2020-07-28 09:55:03] European shares edge higher, luxury stocks hit by weak results
[2020-07-26 21:15:20] Clément Beaune named junior minister for European affairs: Elysée
[2020-07-24 17:15:11] Dutch court suspends Mediaset pan-European plan until Sept.1: sources
[2020-07-24 12:50:13] Activist TCI lodges complaint against Italy with European Commission over Atlantia
[2020-07-24 09:55:13] U.S. must remove tariffs on European products and French wine: Le...
[2020-07-24 09:50:10] Escalating U.S.-China tensions weigh on European stocks
[2020-07-23 10:05:06] Upbeat Unilever, Daimler earnings support European shares
[2020-07-22 09:55:06] Defensives drag down European shares from four-month highs
[2020-07-21 16:10:03] Uniper to work with GE to decarbonise European gas plants
[2020-07-21 12:00:05] European banks face more than 400 billion euros in COVID loan...
[2020-07-21 11:45:03] StockBeat: Historic Summit Deal Removes Drag From European Markets
[2020-07-21 07:50:02] European stock index futures gain after EU stimulus deal
[2020-07-17 09:55:10] Swedish earnings, Daimler support European stocks ahead of EU...
[2020-07-17 03:30:11] Trump administration exempts European students from coronavirus...
[2020-07-16 09:45:07] European shares slip as U.S.-China tensions, poor earnings weigh
[2020-07-16 08:40:06] European new car sales down 24.1% year-on-year in June: ACEA
[2020-07-15 09:50:07] European shares climb on vaccine hopes, mixed earnings
[2020-07-13 10:10:23] European stocks gain, spurred on by cyclical rally
[2020-07-10 09:40:10] European shares enter fourth day of declines, energy firms drag
[2020-07-08 09:50:06] European shares slip as virus cases surge; HSBC, Nokia slump
[2020-07-07 11:35:48] European stocks ease from one-month highs as rebound hopes dim
[2020-07-06 11:05:22] China rally triggers gains in European cyclical stocks
[2020-07-03 16:05:11] Dutch PM Rutte: no necessity to reach European recovery fund deal...