European stocks are seen opening on a cautious note Wednesday, as investors await a slew of economic reports and keep a wary eye on the developments in Ukraine and Iraq.
Iraq's newly nominated prime minister won swift endorsements from the United States and Iran, dealing a blow to incumbent Nouri al-Maliki's bid to remain as the country's top leader. Russian aid to eastern Ukraine must be vetted and distributed by the International Committee of the Red Cross to make sure it is not used for political ends, EU humanitarian aid commissioner Kristalina Georgieva said in an interview.
Meanwhile, after more than 10 hours of talks, Egypt has presented a ceasefire proposal to Israel and Hamas aimed at ending the month-long heavy fighting in the Gaza Strip.
In economic releases, German and French consumer price data as well as reports on U.K. unemployment and eurozone industrial production are slated for release in the European session.
German consumer prices and the harmonized index of consumer prices are expected to rise 0.3 percent month-over-month and by 0.8 percent year-over-year each, confirming the preliminary estimates. French annual consumer price inflation is expected to be stable at 0.5 percent in July while the harmonized consumer price inflation is estimated to come in at 0.6 percent.
The U.K. unemployment rate based on the ILO standards is estimated to drop to 6.4 percent in the three months ended June from 6.5 percent in the previous three months, while the claimant count change is forecast to fall to 30,000 in July from 36,300 in June.
Eurostat is scheduled to release its industrial production report for the euro area, with economists expecting output to rise 0.2 percent in June from a year earlier following the 0.5 percent increase in May.
Investors also look ahead to the Bank of England's inflation report and U.S. data on retail sales and business inventories for further direction. Federal Reserve Bank of New York President William Dudley will deliver a speech at a conference on the risks of wholesale funding in New York at 9.05 am ET.
Asian stocks are turning in a mixed performance as investors digest weak GDP data out of Japan and disappointing Chinese credit data.
In domestic corporate news, German drug maker Merck KGaA backed its annual forecast despite posting 4 percent lower net income of 303.3 million euros in the second quarter of 2014.
Shopping center investor Deutsche Euroshop AG reported increased profit and revenue for the first half of the year and said that it is right on track to fulfill its forecast for the year as a whole.
Printing machines maker Heidelberger Druckmaschinen AG reported first-quarter net loss of 34 million euros, compared to a loss of 38 million euros last year.
Insurer Swiss Life Holding AG reported that its net profit attributable to equity holders for the half year rose to 484 million Swiss francs from 472 million francs last year.
The Aurubis Group reported pretax profit of 21 million euros in the first nine months of fiscal year 2013/14, compared to a loss of 286 million euros in the corresponding period last year.
European stocks fell on Tuesday, as downbeat German economic data and a gloomy outlook from consumer goods group Henkel stirred fresh concerns about the euro zone recovery. NATO's statement that Moscow could use the pretext of a humanitarian or peacekeeping mission to launch an invasion into Ukraine also made investors nervous. The German DAX lost 1.2 percent and France's CAC 40 declined 0.9 percent, while the U.K.'s FTSE 100 ended little changed with a negative bias.
U.S. stocks pulled back in quiet trading overnight following two straight days of gains. Investors remained focused on problems in Ukraine, Iraq and Palestine amid lack of any major economic or corporate news. The Dow edged down 0.1 percent, the tech-heavy Nasdaq slipped 0.3 percent and the S&P 500 eased 0.2 percent.
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May 08, 2026 15:50 ET Manufacturing and services sector survey results and labor market data from main economies were the highlight on the economics news front this week. Factory orders and jobs report dominated the news flow in the U.S. Similarly, industrial production data from German garnered attention in Europe. In Asia, purchasing managers’ survey results from China and the central bank decision from Australia were in focus.