FX.co ★ European Stocks Head for Lower Open

European equity markets were set to open lower on Wednesday, on track for a third straight session of losses, as oil prices continued to rise amid renewed conflict in the Middle East, heightening inflation risks. Global bond yields also moved higher on growing inflationary pressures and deteriorating fiscal conditions, bolstering expectations that major central banks will soon need to raise interest rates. Markets are currently pricing in a rate increase by the European Central Bank at its meeting next week. On the data front, investors will examine figures on France’s budget balance, changes in Spanish unemployment and Italy’s producer price index, while no major corporate earnings releases are scheduled in Europe today. In premarket trading, futures on the Euro Stoxx 50 and Stoxx 600 were both down around 0.4%.