European equity markets should be hesitant to open this Wednesday, August 03, 2022. The Eurostoxx 50 at 3,684.63 points (-0.59%), the CAC 40 at 6,409.80 points (-0.42%), the DAX 40 at 13,449.20 points (-0.23%), the FTSE 100 at 7,409.11 points (-0.06%), the SMI at 111,118.10 points (-0.25%), the AEX at 725.75 points (-0.06%), the AEX at 725.75 points (-0.06%), the SMI at 11,118.10 points (-0.25%), the AEX at 725.75 points (-0.06%) 33%), the BEL 20 at 3,721.19 points (-0.36%), the IBEX 35 at 8,096.90 points (+0.15%), the DJIA at 32.396.17 points (-1.23%), the Nasdaq at 12,348.76 points (-0.16%), the S&P 500 at 4,091.19 points (-0.67%) and the Nikkei 225 at 27,719.80 points (-0.67%) (+0.45%).

As for exchange rates, the change from the close in New York indicates that EUR/USD opens at 1.0186 (+0.18%), EUR/JPY at 135.21 (-0.14%), and USD/JPY at 132.75 (-0.32%).

Societe Generale, Axa, Veolia and ALD publish their half-year results on Wednesday. On Tuesday evening, Bic raised its revenue growth forecast for 2022, after registering double-digit sales growth in the first half of the year. The group now expects growth of between 10% and 12% at constant exchange rates for the whole year, compared with an increase of 7% to 9% previously expected.

On the macroeconomic front, investors will be watching the final July services PMI figures. S&P Global's first estimate, published on July 22, showed the index falling to 52.1 from 53.9 in June. Above 50, the index signals an expansion of activity.

European equity markets are expected to change little at the opening on Wednesday, after Federal Reserve (Fed) officials said on Tuesday that the tightening cycle was far from over, and against a background of continuing concerns over tensions Sino-American policies. Around 7:40am, the CAC 40 futures contract was down 14 points, or 0.2%, according to data from the IG Markets broker. The DAX 40 contract gained 5 points, or 0.04%, and the FTSE 100 contract lost 14 points, or 0.2%.

Wall Street closed lower on Tuesday. The Dow Jones Index (DJIA) lost 1.2%. The broader S&P 500 index fell 0.7% and the Nasdaq Composite dropped 0.2%. In addition to Nancy Pelosi's visit to Taiwan and monetary policy, investors will be watching Wednesday's OPEC meeting, which brings together the Organization of Petroleum Exporting Countries (OPEC) and ten allies led by Russia, to a series of indicators on service sector activity in Europe and the United States, as well as new results from companies on both sides of the Atlantic.

OPEC and its allies are considering either increasing oil production modestly or maintaining production at current levels, according to delegates, as the organization needs time to assess the possible slowdown in global energy demand. OPEC is under some pressure to increase supply and help lower crude prices after U.S. President Joe Biden visited Saudi Arabia last month. Most Asian markets recovered on Wednesday, following the strong selling movement on Tuesday. At the end of the session, the Nikkei index gained 0.5% in Tokyo and the Shanghai Composite gained 0.4%. At the same time, the Hang Seng Index on the Hong Kong Stock Exchange increased to 0.6%.

US Treasury bond prices fell on Tuesday, driving up yields, which move in the opposite direction of prices, and erasing much of their recent gains after three Federal Reserve officials said the central bank still had a long way to go to bring inflation under control.

The dollar lost ground on Wednesday, especially against the euro and the yen, but could recover due to risk aversion caused by Nancy Pelosi's move to Taiwan, analysts say.

Oil futures fell slightly on Wednesday, due to uncertainty over the outcome of the OPEC+ meeting. Around 7:30am, the October North Sea Brent contract was down 30 cents to $100.24 per barrel, while the September contract for light sweet crude (WTI) listed on Nymex fell by 19 cents to $94.23 per barrel.