European Stock Futures Mixed; Russia/Ukraine Talks, ECB Meeting in Focus

European Stock Futures

European stock markets are expected to open in a mixed fashion Thursday, as investors digest wild swings in oil prices ahead of new high-level Russia/Ukraine talks and the latest policy-setting European Central Bank meeting.

At 2:05 AM ET (0705 GMT), the DAX futures contract in Germany traded 0.4% lower, CAC 40 futures in France dropped 0.5%, while the FTSE 100 futures contract in the U.K. rose 0.5%.

European equities posted strong gains on Wednesday, with the DAX and the CAC 40 both gaining over 7%, after crude prices suffered their biggest one-day drop in almost two years amid indications major producers could increase supply to attempt to make up for the disruptions caused by the Western sanctions on Russia.

Comments from UAE’s ambassador to Washington saying his country will be encouraging OPEC to consider higher output to fill the supply gap as well as reports that Iraq was prepared to increase production resulted in hefty falls in the price of crude. They have since rebounded to a certain extent.

By 2:05 AM ET, U.S. crude futures traded 1.5% higher at $110.37 a barrel, having fallen more than 12% on Wednesday, its worst day since late November. The Brent contract rose 2.7% to $114.09, after dropping 13%, the largest one-day drop since April 2020.

Markets have been roiled over the last couple of weeks by Russia’s invasion of Ukraine, with commodity prices, and oil in particular, soaring to record levels, raising stagflation fears.

The FTSE MIB fell by 6.95% to 23,889.20. In the cash markets, the DAX  Germany rose by 7.92%  to 13,847.65. CAC 40  in France rose by 7.13% to 6,387.37 while the FTSE 100  in the U.K. was up by 3.27% to 7,190.35, at the time of writing.

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