© Reuters.
Investing.com – European stock markets stabilized on Wednesday, with the rise in risk that dominated sentiment late last year coming to a halt as investors digested key economic data.
At 3:10 a.m. ET (08:10 GMT), the German index was trading largely flat, the British index was up 0.2%, while the French index was down 0.1%.
The resumption of risk marks a pause
European stocks posted strong gains at the end of 2023, but that market optimism generated by hopes that central banks will announce early interest rate cuts has faded in the face of disappointing economic data.
Data released Tuesday showed the euro zone contracted in December for the 18th consecutive month, pointing to an economy likely in recession.
The picture is similar across the Atlantic, with the US falling to 47.9 in December from 49.4 the month before, and moving further into contraction territory.
The economic data slate is quiet in Europe on Wednesday, with only Germany due in December.
More attention will be paid to the results of the latest Federal Reserve meeting, scheduled for release later on Wednesday, which will help traders assess the central bank’s thinking regarding monetary easing.
Online travel agencies have stopped selling Ryanair flights
On the corporate side, Ryanair (IR:) will be in the spotlight after the budget carrier said a number of online travel agents had stopped selling its flights in early December following legal pressure and regulatory.
Ryanair said it expected the move to reduce its short-term load factors by 1% or 2% in December and January, but did not expect it to significantly affect traffic volumes for the entire year or its after-tax profit forecasts.
Crude falls before US stocks
Oil prices fell on Wednesday after sharp gains earlier in the week, ahead of the release of crucial weekly inventory data from the United States, the world’s largest consumer.
As of 3:10 a.m. ET, futures were trading down 0.6% at $69.95 per barrel, while the contract was down 0.5% at $75.51 per barrel.
The industrial group’s U.S. crude stocks are expected later on Wednesday, a day later than usual due to Monday’s New Year holiday, ahead of official data on Thursday.
Crude benchmarks rose sharply at the start of the week as attacks on ships in the Red Sea by Houthi rebels over the weekend raised fears of possible supply disruptions in the key region.
Additionally, the price fell 0.1% to $2,072.30/ounce, while trading 0.2% higher at 1.0964.