European stocks are poised to open higher on Wednesday, with signs of an improving U.S. economy likely to underpin investor sentiment. As the session progresses, investors will react to GDP data from euro area and other major eurozone nations.
The French economy slipped into recession in the first quarter of 2013, preliminary data from statistical office Insee showed. The gross domestic product declined 0.2 percent in the first quarter of 2013 following a 0.2 percent contraction in the fourth quarter of 2012, which is revised from the previous estimate of 0.3 percent fall.
Analysts expect German GDP to grow 0.3 percent in the first quarter, partially offsetting the 0.6 percent drop in the prior quarter.
Across the Atlantic, traders will likely keep an eye on reports on producer price inflation, industrial production and homebuilder confidence for clues about whether the Fed would taper back its $85 billion quantitative easing program.
Asian stocks are trading mostly higher, with Japan's Nikkei index rallying over 2 percent to a fresh 5-1/2 year high on further weakening of the yen, while India's Sensex is gaining 1.9 percent on hopes the RBI will cut its policy rates once again in June. Australia's All Ordinaries index is down half a percent, led by miners after mining services contractor UGL slashed its full-year profit guidance.
Chinese shares are marginally higher after Premier Li Keqiang said the economy is facing "relatively large" downward pressure and the economic situation remains "complicated." He also warned that there is little room to use government spending and policy stimulus to boost growth as the risks outweigh the benefits. "We must rely on market mechanism to achieve this year's targets," Li was quoted as saying in May 13 speech broadcast to officials around the country.
In domestic corporate news, French media and telecom group Vivendi Soci reported a near 24 percent drop in first-quarter profit, hurt mostly by lower revenues and margins.
German carrier Air Berlin said its pre-tax loss for the first quarter widened to 213.4 million euros from 152.9 million euros in the corresponding period last year.
Insurer Allianz SE confirmed its operating profit outlook for 2013 of 9.2 billion euros plus/minus 0.5 billion euros after reporting a 24 percent rise in first-quarter net income.
Utility RWE AG backed its full-year view after reporting higher profit for the first quarter amid a marginal rise in revenues.
Construction and machinery manufacturer Bauer AG said its net loss for the first quarter widened to 9.6 million euros from 4.7 million euros in the year-ago period.
Steel giant ThyssenKrupp AG reported second-quarter net loss from continuing operations of 89 million euros as against 164 million euros loss last year.
Swiss private banking group Julius Baer Group announced that its assets under management amounted to CHF 220 billion at the end of April, an increase of 16 percent from the CHF 189 billion at the end of same period last year.
The European Commission has raided offices of at least three European oil companies, including Royal Dutch Shell Plc, BP Plc and Statoil ASA of Norway, as part of unannounced inspections over possible price fixing in breach of anti-trust rules, reports suggest.
European stocks reversed earlier losses on Tuesday, boosted by gains on Wall Street and encouraging eurozone industrial production data. Benchmark indexes in Germany, France, the U.K. and Switzerland rose between 0.5 percent and 0.8 percent.
U.S. stocks posted notable gains overnight on optimism the U.S. economy is gaining traction. The Dow rose 0.8 percent and the S&P 500 added a percent to new record highs, while the tech-heavy Nasdaq gained 0.7 percent to set another fresh twelve-year high.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.