European equity markets are expected to open higher while the Delta variant remains watched. This Wednesday, July 21, 2021, the Eurostoxx 50 opens at 3,956.34 points up 0.71%, the CAC 40 at 6,346.85 points (+0.81%), the DAX 30 at 15,216.27 points (+0.55%), the FTSE 100  at 6,881.13 points (+0.54%), the SMI at 11,945.68 points (+0.70%), the AEX at 722.03 points (+0.13%), the BEL 20 at 4,119.12 points (+0.83%), the IBEX 35 at 8,358.00 points (+0.68%), the DJIA  at 33,511.99 points (+1.62%), the Nasdaq at 14,498.88 points (+1.57%), the S&P 500 at 4,323.06 points (+1.52%) and the Nikkei 225 at 27,483.94 points with an increase of 0.35%.

On the exchange rate side, the change from the close in New York indicates that EUR/USD is down 1.1773, down 0.08%, EUR/JPY  at 129.40 with a decline of 0.03% while USD/JPY jumps 109.92, or 0.05%.

 Investors will remain attentive on Wednesday to the health situation in France, where the number of new cases of Covid-19 is increasing very quickly and where the health pass becomes mandatory to access many activities from this day. A health defense council, chaired by Emmanuel Macron, is being held this Wednesday and the Prime Minister, Jean Castex, will speak at 13:00 on the TF1 channel.

European equity markets are expected to open higher on Wednesday, as investors continue to watch the evolution of the delta variant of the coronavirus and its impact on the recovery of the global economy. At 7:35 a.m., the CAC 40 futures contract was up 24 points, or 0.4%, according to data from broker IG Markets. The DAX 30 contract gained 26 points, or 0.2%, and the FTSE 100 contract rose 15 points, or 0.2%. Investors' attention is also focused on the results of companies in Europe and the United States. The quarterly accounts of Johnson & Johnson, Coca-Cola, Daimler and Novartis are expected on Wednesday. Wall Street ended higher on Tuesday, thanks to cheap purchases after the sharp decline in indices caused the day before by fears related to the Delta variant and the economic recovery. The Dow Jones Index (DJIA) gained 549 points, or 1.6%, to 34,511.99 points, and the broader S&P 500 Index recovered 1.5% to 4,323.06 points. The Nasdaq Composite closed up 1.6% to 14,498.88 points. In Asia, the main indices are moving in scattered order on Wednesday. At the end of the session, the Nikkei index of the Tokyo Stock Exchange gained 0.4% and the Shanghai Composite rose 0.7%. On the other hand, the Hang Seng gave up 0.5% in Hong Kong.

U.S. Treasury yields fall Wednesday morning. At 7:35 a.m., the rate on the ten-year Treasury bond stood at 1.216%, against 1.224% on Tuesday night. In the euro area, the European Central Bank (ECB) is unlikely to change its monetary policy, including its Pandemic Emergency Purchase Programme (PEPP), before September when it publishes new growth and inflation forecasts, said Erick Muller of Muzinich & Co.

The euro retreated on Wednesday against the dollar, due to persistent concerns about Covid-19 and its Delta variant. At 7:35 a.m., the single currency was trading at $1.1777, down 0.05%. According to Trading Central's technical analysis, the euro/dollar pair is facing key resistance at $1.1800. The single currency has moved away from the low point at about $1.1755 reached on Tuesday, but remains held back by the 50-day downward moving average. At the same time, a bearish figure of lower peaks remains intact. A return to $1.1755 would trigger a sharper pullback toward $1.1740. Only breaking through the key resistance at $1.1800 would lead to an upward reversal.

Oil contracts fell on Wednesday morning as the market adjusted to the new production agreement of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, ANZ said. Operators' attention will turn in the afternoon to the Energy Department's weekly report on oil inventories in the United States. The American Petroleum Institute (API) on Tuesday night announced an unexpected 806,000 barrel increase in crude inventories last week and a 3.3 million barrel jump in fuel inventories. At 7:25 a.m., the September contract on North Sea Brent lost 39 cents, to $68.96 a barrel, and the same maturity contract on WTI fell 37 cents, to $66.83 a barrel.