Investing.com – European stock markets edged higher Wednesday, as investors digested generally positive quarterly corporate earnings despite weak German economic data.
At 03:10 ET (07:10 GMT), the in Germany traded 0.3% higher, the in France traded 0.4% higher and the in the U.K. climbed 0.4%.
German economy remains weak
declined in March, according to data released earlier Wednesday, providing more reason for the European Central Bank to start a rate-cutting cycle in the near future.
Industrial production fell in March by 0.4% compared to the previous month, after having increased by 1.7% in February on the month, less than the 2.1% before the revision of the data.
Demand in manufacturing remains weak. German industrial orders fell by 0.4% month-on-month in March, data showed on Monday.
The has signaled a rate cut in June, and much of traders’ attention is on the Fed outlook, given the current uncertainty over when the U.S. central bank will start cutting interest rates.
Minneapolis Fed boss suggested on Tuesday that stubborn inflation and a robust economy could prevent a rate cut from happening this year.
A number of his colleagues are set to speak later Wednesday, including Vice Chair , Governor and Boston Fed President .
AB Inbev backs full-year guidance
The quarterly earnings continued apace Wednesday.
Anheuser Busch Inbev (EBR:) stock rose 4% after the world’s largest brewer said its volumes dropped by less than expected in the first quarter, and backed its guidance after saying that the three-month performance was encouraging.
BMW (ETR:) stock fell over 4% after the German auto giant said it expects a slight drop in pretax profit this year due to higher research and development, manufacturing and personnel costs, after reporting a fall in its first-quarter profit margin in its automotive segment.
Siemens Energy (ETR:) stock rose 10% after the German company raised its full-year outlook for sales, operating profit and free cash flow, while reporting its second-quarter profit before special items rose more than fourfold.
Siemens Energy also announced plans to replace the boss of its troubled wind turbine division, also flagging job and capacity cuts as it tightens its grip on the loss-making business.
Crude slips lower after increase in US stockpiles
Crude prices retreated Wednesday as industry data showed an increase in inventories, a sign of weak demand in the world’s largest energy consumer.
By 03:10 ET, the U.S. crude futures traded 1% lower at $77.57 per barrel, while the contract dropped 1% to $82.30 per barrel.
Data from the showed on Tuesday that U.S. oil inventories grew 0.5 million barrels in the week to May 3, coming in ahead of expectations for a draw of 1.4 million barrels.
Official U.S. government data on stockpiles from the are due later in the session.
Meanwhile, Israel kept up its offensive against Rafah in southern Gaza on Tuesday, the day after Hamas officials reportedly accepted a new ceasefire proposal.
Still, U.S. officials said a ceasefire could still be reached, as delegates from both sides met in Cairo for negotiations.
Additionally, fell 0.2% to $2,320.70/oz, while traded 0.1% lower at 1.0745.
