European Stocks Open with Lackluster Movement
As of 30 minutes into Wednesday’s trading session, the European stock markets are displaying mixed results.
The Stoxx 600 index for the continent is currently flat, with individual sectors showing no unified trend.
Among the major indexes, the French CAC 40 is leading the day with a gain of about 0.3%. In London, the FTSE 100 has risen by 0.1%, while the German DAX index remains largely unchanged.
— Chloe Taylor
Elon Musk Expresses Regret Over Recent Trump Posts
Elon Musk, the CEO of Tesla, revealed on Wednesday that he feels regret about some social media comments he made last week amid a heated public spat with former ally, President Donald Trump.
Inditex Reports Slower Summer Sales as Revenues Fall Short
Inditex, the parent company of Zara, announced on Wednesday that its quarterly sales fell short of expectations and indicated a sluggish start to the summer season amidst ongoing economic uncertainty.
The Spanish retailer’s revenues for the fiscal first quarter, from February 1 to April 30, amounted to €8.27 billion ($9.44 billion), slightly below the anticipated €8.39 billion, according to LSEG analysts.
Net income for the quarter was €1.3 billion, just a fraction below analysts’ expectations of €1.32 billion.
— Karen Gilchrist
Key Points on U.S.-China Trade Agreement
Representatives from the U.S. and China have reportedly come to a trade agreement following two days of high-level discussions in London, pending approval from their respective leaders.
U.S. Commerce Secretary Howard Lutnick informed reporters that a framework has been established to implement the discussed agreements, which notably include Chinese restrictions on rare-earth exports to the U.S.
He indicated that upcoming U.S. restrictions on advanced technology sales to China may be lifted as Beijing moves to address the issue of rare-earth exports.
— Evelyn Cheng
Market Opening Updates
Good morning! Welcome to CNBC’s live blog covering European market activity along with the latest regional and global business news, data, and earnings reports.
Futures data from IG suggests that London’s FTSE is projected to open 14 points lower at 8,852, while Germany’s DAX is expected to dip 105 points to 23,925. Meanwhile, the French CAC 40 will likely decrease by 9 points to 7,788 and Italy’s FTSE MIB is expected to drop 95 points to 40,082.
Global markets have responded variably to news that U.S. and Chinese officials have reached a tentative trade consensus after discussions in London, which now requires approval from the two nations’ leaders.
— Holly Ellyatt
Today’s Key Focus Areas
Investors globally are closely monitoring the upcoming U.S. inflation report for May.
Economists from Dow Jones predict a 0.2% increase month-over-month, with an annual growth in the consumer price index expected to be around 2.4%. Surprising data could unsettle investors already concerned about inflation and the potential pace of Federal Reserve rate cuts.
Additionally, traders will be observing a keynote address by Nvidia at the VivaTech conference in Paris and Goldman Sachs’ annual European Financials Conference.
In the U.K., investors are also awaiting the government’s “Spending Review,” which outlines daily spending and investment plans across all departments.
Inditex is set to release its earnings today as well.
— Holly Ellyatt
